Section 16 Securities Exchange Act

With respect to transactions by persons subject to section 16 of the act.

Section 16 securities exchange act. 112 158 approvedaugust10 2012 table of contents titlei regulation ofsecuritiesexchanges. 88 467 8 a substituted registered pursuant to section 78l of this title for registered on a national securities exchange commission and if such security is registered on a national securities exchange also with the exchange for exchange and a duplicate original thereof with the commission a change. Securities lawyer 101 blog.

Section 16 a of the exchange act of 1934 the exchange act requires the reporting of beneficial ownership by the officers directors and stockholders who hold stock directly or indirectly beneficially owning more than 10 of the company s common stock or other class of equity securities registered under section 12 b or 12 g of the exchange act. Necessity for regulation as provided in this title. Section 16 a of the exchange act requires that directors and officers of a company that has a class of securities registered under section 12 of the exchange act a public company as well as persons who beneficially own more than 10 of any class of equity security other than an exempted security which is registered under section 12.

The rules under section 16 of the act apply to any class of equity securities of an issuer whether or not registered under section 12 of the act. Section 16 is a rule within the securities exchange act of 1934 sea that articulates the regulatory filing responsibilities that directors officers and principal stockholders are legally. Section 16 a directors officers and principal stockholders required to file a disclosures required 1 directors officers and principal stockholders required to file every person who is directly or indirectly the beneficial owner of more than 10 percent of any class of any equity security other than an exempted security which is registered pursuant to section 16 l of the securities.

If an officer a director or a large 10 or more shareholder of a public corporation realizes a profit from buying and selling stock within a six month period section 16 b of the securities exchange act of 1934 the act authorizes the corporation to recover from such statutory insider any so called short swing profits. The rules under section 16 of the act also apply to non equity securities as provided by the investment company act of 1940.