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Another Look at Rule 10b5-1 Trading Plans

By establishing a prearranged plan to trade their companies' stock in compliance with SEC Rule 10b5-1, corporate executives avail themselves of the only formally codified affirmative defense against a charge of insider trading. However, statistical evidence demonstrating that executives in trading plans outperform their peers by 6% to 10% have twice brought trading plans under academic and journalistic scrutiny.

24 minute read December 31, 2013 at 11:00 PM
By
Aegis J. Frumento and Stephanie Korenman
Another Look at Rule 10b5-1 Trading Plans

By establishing a prearranged plan to trade their companies' stock in compliance with SEC Rule 10b5-1, corporate executives avail themselves of the only formally codified affirmative defense against a charge of insider trading.

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