Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
Executives and key employees with equity comp must sell company shares to meet financial goals but also need to avoid insider trading. A prearranged Rule 10b5-1 trading plan for automatic, periodic buying and selling can offer protection. This article has insights from experts on how to use these plans safely and effectively.
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.
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.
Podcast included! 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.
SEC Rule 10b5-1 provides a defense against charges of insider trading if you later trade stock while you know confidential, important information about your company. A Rule 10b5-1 trading plan is a program for the preset purchase and/or sale of your stock that meets the requirements of this SEC rule, including the need to...
The SEC has been looking into abuses of Rule 10b5-1 trading plans for several years, and academic research suggests that abuses of these plans regularly occur. In December 2021, the SEC proposed new requirements that would...
SEC Rule 10b5-1 does not have many details on setting up and operating these prearranged stock-trading plans. Best practices have evolved for companies and insiders to follow. These include...
Companies can adopt insider-trading policies or Rule 10b5-1 plans and make them a condition of accepting any stock grants. Some companies' policies on insider trading actually...
A properly developed Rule 10b5-1 trading plan offers you an affirmative defense against charges of insider trading. However, it is possible to lose the protection of the rule by canceling or modifying the plan while...
Both Rule 10b5-1 and the broader use of restricted stock and RSUs are new, so practices and procedures are evolving. Companies are considering the widespread use of Rule 10b5-1 plans for this...
Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
Listen to the podcast on the basics of SEC Law and Insider Trading.
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