The Vice-President of ACME Corporation, an NYSE listed firm, places an order to buy 10,000 shares of ACME common at the market. 3 months later, ACME stock's price has increased by 20% and the officer places an order to sell. Which statement is TRUE? The sale of the stock is not subject to Rule 144 The stock cannot be sold unless it has been held, fully paid, for 6 months The sale is prohibited until a "waiver of liability" has been obtained from the issuer The officer must forfeit the profit on the sale

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Business

Norah Bradshaw

7 May, 08:18

The Vice-President of ACME Corporation, an NYSE listed firm, places an order to buy 10,000 shares of ACME common at the market. 3 months later, ACME stock's price has increased by 20% and the officer places an order to sell. Which statement is TRUE? The sale of the stock is not subject to Rule 144 The stock cannot be sold unless it has been held, fully paid, for 6 months The sale is prohibited until a "waiver of liability" has been obtained from the issuer The officer must forfeit the profit on the sale

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Answers (1)

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Draven Henry · Answer 1

The correct answer is D

Explanation:

The officer must forfeit the profit on the sale. Remaining options are not correct with respect to the sale.

Relinquishment is the loss of any property without pay because of defaulting on legally binding commitments, or as a punishment for unlawful direct. Relinquishment, under the particulars of an agreement, alludes to the prerequisite by the defaulting gathering to surrender responsibility for resource, or incomes from a benefit, as pay for the subsequent misfortunes to the next gathering.

When commanded by law, as a discipline for criminal behavior or disallowed exercises, relinquishment procedures might be either criminal or common. The procedure of relinquishment regularly includes procedures in an official courtroom.

Therfore, option D is correct