Publication Date
1970
Abstract
IT is commonly believed that trading by a corporate officer or director, or other person close to the decision making processes of a corporation, in stock of the corporation can pose peculiar dangers and raise substantial questions of fairness, especially if such trading is speculative in nature. A corporate manager's investment in the shares of his company represents a personal financial commitment to the future of the company and admittedly is beneficial to all. Yet, when an insider speculates, his knowledge of corporate plans and affairs can give him an unfair advantage over other investors in timing his transactions so as to buy when the price is low and sell when high. Numerous instances in which officers, directors and large shareholders had realized huge prof- its by various speculative devices were revealed by the congressional investigation' preceding enactment of the Securities Exchange Act of 1934.
Recommended Citation
Lokken, Lawrence
(1970)
"Tax Significance of Payments in Satisfaction of Liabilities Arising Under Section 16(b) of the Securities Exchange Act of 1934,"
Georgia Law Review: Vol. 4:
No.
2, Article 4.
Available at:
https://digitalcommons.law.uga.edu/glr/vol4/iss2/4