What is a 10b5-1 trading plans?
Rule 10b5-1 allows company insiders to set up a predetermined plan to sell company stocks in accordance with insider trading laws. The price, amount, and sales dates must be specified in advance and determined by a formula or metrics.
Are 10b5-1 plans required?
A public announcement by any person of the adoption of a Rule 10b5-1 plan is not required. A company may choose to disclose the existence of certain Rule 10b5-1 plans in order to reduce the negative public perception of insider stock transactions.
Who can do a 10b5-1 plan?
Rule 10b5-1 plans can be established by any person who is not aware of material, nonpublic information at the time the plan is established. While these plans are most often used by corporate executives, board members, and other insiders, a person does not have to be an insider to establish a 10b5-1 plan.
How long does a 10b5-1 plan last?
Plans typically have terms ranging from six months to two years. Rule 10b5-1 plans should include only securities of companies where the participant is likely to acquire MNPI. In addition to the securities of one’s employer, this may include securities of key suppliers and customers.
How do I file Form 144 with SEC?
Form 144 must be filed with the SEC by an affiliate as a notice of the proposed sale of securities when the amount to be sold under Rule 144 during any three-month period exceeds 5,000 shares or units or has an aggregate sales price in excess of $50,000.
Does Reg FD apply to foreign private issuers?
Regulation FD will apply to all issuers with securities registered under Section 12 of the Exchange Act, and all issuers required to file reports under Section 15(d) of the Exchange Act, including closed-end investment companies, but not including other investment companies, foreign governments, or foreign private …
Does Rule 144 apply to foreign issuers?
See Securities Act Rules, Compliance and Disclosure Interpretations Question 131.07. Securities issued by foreign private issuers are exempt from Section 16. See Exchange Act Rule 3a12-3.