10b5-1 Plan

A 10b5-1 Plan is a pre-arranged trading plan that allows company insiders, like executives, to buy or sell company stock at scheduled times, even if they have confidential or material information. By setting up the plan in advance, they can trade without violating insider trading laws or the company's policies. This plan provides a legal and transparent way to manage stock transactions, reducing the risk of accusations of insider trading while enabling individuals to diversify or plan their financial portfolios systematically.