Academic Commons

Articles

Do SEC’s 10b5-1 Safe Harbor Rules Need To Be Rewritten?

Mavruk, Taylan; Seyhun, H. Nejat

We examine the profitability of insider trading under SEC Rule 10b5-1 plans. The plans do work to prevent some informed trading. However, on average, insider trading under the safe harbor plans appears to be motivated by material non-public information. We propose some policy changes to tighten the rule and enable separation of informed and uninformed insider trading.

Geographic Areas

Files

  • thumnail for 1734-Article Text-4243-1-10-20190610.pdf 1734-Article Text-4243-1-10-20190610.pdf application/pdf 614 KB Download File

Also Published In

Title
Columbia Business Law Review
DOI
https://doi.org/10.7916/cblr.v2016i1.1734

More About This Work

Academic Units
Law
Published Here
November 19, 2019