What are 10b5-1 plans?
If you are in possession of material non-public information about a stock, the SEC’s Rule 10b5-1 allows you to plan trades in advance so that you can sell shares without worrying about insider trading allegations. Rule 10b5-1 plans also create a path for employees to sell shares during blackout periods. Generally speaking, anyone can use […]
What is Section 16, and does it apply to me?
Section 16 refers to the 16th section of the Securities and Exchange Act. It requires that certain company insiders—executives, board members, certain key employees, investors owning more than 10%—file paperwork documenting their holdings and trades with the SEC. The goal is to prevent these insiders from profiting off of material non-public information. For instance, if […]
