Davis v. Commissioner
United States Tax Court
The Securities and Exchange Commission determined that the petitioner, who was an officer and director of the corporation in whose stock he was dealing, had violated section 16 (b) of the Securities Exchange Act of 1934 through the sale of 1,000 shares of the company's stock and the repurchase of 1,000 shares at a lower price less than 6 months later.
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The Securities and Exchange Commission determined that the petitioner, who was an officer and director of the corporation in whose stock he was dealing, had violated section 16 (b) of the Securities Exchange Act of 1934 through the sale of 1,000 shares of the company's stock and the repurchase of 1,000 shares at a lower price less than 6 months later. Pursuant to the sanction imposed by section 16 (b), the petitioner paid to the corporation the difference between the amount which he realized from the sale and the cost to him of the shares subsequently purchased. Held, the sanction imposed by…
1Opinion of the Court
OPINION.
HaRron, Judge:
The petitioner, who was an officer and director of United Drug, Inc., owned shares of stock in the corporation which he had purchased in 1938 and 1940. On October 25,1945, and December 1, 1945, he sold 1,000 shares of this stock for $25,441.50, realizing a long term capital gain of $20,469.62. Less than 6 months after these sales, the petitioner purchased 1,000 shares of the company’s stock under an option which had been granted to him and other executives of the corporation at an option price of $12.75 per share. Incidental expenses raised the total cost of the shares…
2Cases cited22 opinions
- Securities & Exchange Commission v. Chenery Corp.Supreme Court of the United States · 1943
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Huntington v. AttrillSupreme Court of the United States · 1892
- United States v. La FrancaSupreme Court of the United States · 1931
- Smolowe v. Delendo CorporationCourt of Appeals for the Second Circuit · 1943
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3Cited by27 opinions
- Marks v. CommissionerUnited States Tax Court · 1956
- Boyle, Flagg & Seaman, Inc. v. CommissionerUnited States Tax Court · 1955
- Tanner v. Comm'rUnited States Tax Court · 2001
- Richey v. CommissionerUnited States Tax Court · 1959
- Nathan and Joanne T. Cummings v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1975
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