Which of the following statements about "Short-Swing" profits is true?

"Short-Swing" profits refer to the profits earned by corporate insiders from buying and selling their company's stock within a six-month period. The rationale behind the regulation of these profits is to prevent potential abuses of insider information and to maintain market integrity.

The statement about there being "no defenses" highlights the strict liability associated with short-swing profit regulations. This means that insiders cannot defend against the recovery of profits based on the argument that they were unaware of insider information or that they acted in good faith. The law imposes penalties indiscriminately, emphasizing the importance of transparency in trading activities by corporate insiders.

The reference to "insider information is deemed to be used" acknowledges that transactions involving insiders are heavily scrutinized. Even if they claim they did not use insider information, the nature of their position makes them subject to the presumption that they may have had access to non-public, material information that could have influenced their trading.

The part stating that "the corporation is supposed to sue to recover the profit" confirms the legal obligation placed on the corporation to take action when insiders do engage in short-swing trades that yield profits. This is designed to ensure that any unfair gains made using privileged information are returned to the company, which is ultimately owned by