Securities Advisory: Rule 10b5-1 Trading Plans: A One-Year Update
9/1/2001
This advisory reviews the impact of the SEC's adoption of Rule 10b5-1 in October 2000. This rule created a "safe harbor" which directors, executives, employees and others may utilize in order to trade a company's securities even during "blackout periods" or other periods in which they are aware of material nonpublic information regarding the company. The advisory outlines some of the practical considerations encountered in formulating and reviewing trading plans, including the benefits to the company, the general requirements for trading plans, practical considerations when adopting trading plans and other securities law considerations.
