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A good 10b5-1 should allow trades to be executed on your behalf even while you might hold non-public information. Useful for cash flow, so you can buy nice thin
by cbhl 6y ago
A good 10b5-1 should allow trades to be executed on your behalf even while you might hold non-public information. Useful for cash flow, so you can buy nice things.
But if you control the date of the announcement to line up with instructions in your 10b5-1 plan, that would probably look more like insider trading despite the plan.
- deleted 6y ago[deleted]
- candiodari 6y agoWhich is how legal insider trading for management works these days. Because cancelling a 10b5-1 is perfectly legal at any time. So you could totally abuse the system by submitting 5 of them, designed to allow for different strategies, then cancelling some of them to pick specific trading strategies based on more recent insider info. And this works: cancelling them is normal, so that won't even attract much attention. It's a matter of executing well on this loophole.