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Why regulators are watching executive stock sales

The SEC is asking tough questions about whether 10b5-1 plans are fit for purpose

Securities regulators are rethinking rules on popular plans that let corporate executives sell stock without violating insider-trading provisions.

The plans — known as 10b5-1 plans — allow executives to create schedules for buying and selling shares in the future. In theory, a predetermined sale, even if it comes at a fortuitous time, wouldn’t be based on inside information.

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