Bateman, Hal M.2010-04-012010-04-01197145 St. John's L. Rev. 772http://hdl.handle.net/10601/306Despite its ostensible simplicity and the general wholesomeness of its stated purpose, section 16(b) of the Securities Exchange Act of 1934 has had both a litigious and a controversial history. Nevertheless, it has endured without statutory change for thirty-seven years. Designed to prevent unfair use of corporate information by insiders in short-swing, speculative trading in the securities of the company, this provision makes all profits realized by such insiders from such trading recoverable by the corporation. It is the purpose of this article to review in general outline the transition which has occurred in the courts' approach in interpreting the section, to examine some of the recent cases which have undertaken the application of the new pragmatic method of interpretation, and to comment on the directions the courts should consider in future cases.en-USSection 16(b)Securities Exchange Act of 1934Article