SEC rules, company insider-trading policies, and fears of insider-trading allegations may make stock sales tricky for corporate insiders. Rule 10b5-1 trading plans offer a potential solution, but they must be properly drafted and implemented.
Rule 10b5-1 trading plans aren't just for SEC compliance to avoid insider trading—they also play a role in helping clients reach their financial-planning goals. Whether you’re a financial advisor or an individual wanting to use a pre-set stock-trading plan, this article explains how best to do it.
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A Rule 10b5-1 trading plan is an ideal solution when SEC regulations and corporate insider-trading policies would otherwise keep you from selling your shares. However, to be effective these plans must be properly implemented. Part 2 explores their restrictions and flexibility, and how to disclose them.
Executives must carefully balance the demands of many constituencies interested in their company's stock. Explores ways to manage these pressures while achieving financial goals.
Your advisors say now is the time to buy or sell your company stock or to exercise options. But before you proceed, you'd better understand the securities laws that apply. Otherwise, you risk losing your profits, paying big fines, attracting unwanted media attention, and perhaps even going to jail. The storm of controversy over the backdating of stock option grants shows how closely executive stock sales are scrutinized.