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imposing a $3,000 limitation on the amount of capital losses
petitioners may report would defeat Congress’s intent to tax only
the economic gain received by a taxpayer.
III. Whether Petitioner’s Rights in his MGC Shares Were Subject
to a Substantial Risk of Forfeiture Within the Meaning of Section
83(c)(3)
Section 16(a) of the Exchange Act requires the principal
stock holders of any class of equity security registered under
section 12 of the Exchange Act, and the directors and officers of
the issuer of such securities (hereinafter insiders), to file
periodic statements with the SEC disclosing the amount of equity
securities such insider owns, and purchases and sales made by
such insider, during the reporting period. Section 16(b) of the
Exchange Act provides in pertinent part:
(b) For the purpose of preventing the unfair use
of information which may have been obtained by such
beneficial owner, director, or officer by reason of his
relationship to the issuer, any profit realized by him
from any purchase and sale, or any sale and purchase,
of any equity security of such issuer (other than an
exempted security) or a security-based swap agreement
(as defined in section 206B of the Gramm-Leach-Bliley
Act) involving any such equity security within any
period of less than six months, unless such security or
security-based swap agreement was acquired in good
faith in connection with a debt previously contracted,
shall inure to and be recoverable by the issuer,
irrespective of any intention on the part of such
beneficial owner, director, or officer in entering into
such transaction of holding the security or security-
based swap agreement purchased or of not repurchasing
the security or security-based swap agreement sold for
a period exceeding six months.
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