10b5-1 plan

10b5-1 plan definition - business

10b5-1 plan

An investment plan that permits officers, directors, and other insiders of publicly traded companies to arrange future stock transactions that can be completed even though nonpublic information later becomes available. The plan allows for greater trading flexibility for corporate insiders who would otherwise face restrictions resulting from material nonpublic information.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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