Tips For Your Rule 10b5-1 Trading Plan Policy

Law360, New York (May 14, 2013, 2:38 PM EDT) -- Rule 10b5-1 trading plans are no stranger to controversy. First introduced in 2000 by the U.S. Securities and Exchange Commission, Rule 10b5-1 trading plans permit a corporate insider to adopt a plan of acquisition or disposition of his or her company’s stock when not in possession of material nonpublic information so that trades may be executed by a broker at predetermined times regardless of whether the insider then possesses material nonpublic information.

Now that investigations have been initiated by U.S. Attorney’s Offices and the SEC into...
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