Final answer:
In the context of Section 16B, trading refers to the buying or selling of securities by insiders of a company.
Step-by-step explanation:
In the context of Section 16B, "trading" refers to the buying or selling of securities, such as stocks or bonds, by insiders of a company. Insiders include officers, directors, and significant shareholders of the company. Trading can involve various types of transactions, such as buying or selling directly on the stock exchange, executing options or derivative contracts, or even gifting securities.
For example, if an officer of a company buys shares of the company's stock on the open market, that would be considered trading for Section 16B purposes. Similarly, if a director sells their holdings of the company's stock, that would also be classified as trading. It is important to note that Section 16B requires insiders to report their trading activity and comply with certain restrictions to prevent insider trading.