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

D.  The officer must forfeit the profit on the sale

Explanation:

The Vice-president of ACME who is the one attempting to sell is an officer of ACME and as such falls under Rule 144 of the Securities Exchange Act of 1934 as a control person.

This Act is meant to curb market manipulation and so it places restrictions on some activities by officers of a company. One of which is that for the seller to claim any profits on such sales, they would have to had held the stock for at least 6 months so that they do not have a "short swing" profit. If they do so, they are to pay the profits accrued back to the Issuer of the stock so indeed, the officer must forfeit the profit on the sale.

answer; dogs;