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Rule 10b5-1

   Also found in: Wikipedia 0.01 sec.
Rule 10b5-1
An SEC rule that allows an employee of a publicly-traded company to create a plan of when and how to sell shares in that company. The employee writes and files this plan while he/she has no nonpublic knowledge about the company. Following this plan and selling shares according to it allows the employee to sell shares without fear of being accused of insider trading, regardless of what nonpublic knowledge he/she may later come to possess.

Rule 10b5-1
An SEC rule that permits an employee to adopt a written plan to sell shares when the employee is not in possession of material nonpublic information. Shares can then be sold according to the plan on a regular basis, regardless of subsequent nonpublic information received by the employee. Also called selling plan.


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The stock trading plan was adopted in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934 and Landec's policies regarding stock transactions.
entered into a Rule 10b5-1 trading plan on August 11, 2009 in connection with its holdings of E*TRADE Financial Corporation (NASDAQ: ETFC).
ATLANTA -- UPS (NYSE:UPS) today announced it has modified the terms of its insider trading compliance guidelines to enable employees to use stock trading plans that comply with the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934.
 
 
 
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