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It’s like trading windows and blackout periods for employee RSUs, but equity selloff on a schedule for the c suite.



That's not quite how it works. Certain people are required (or strongly encouraged) to sell on a 10b5-1 plan. These plans can trade outside of open trading windows, but they have a meaningful cooldown period before they go into effect and can only be entered into during open trading windows. So it's not necessarily "better."


That’s really about not falling foul of insider trading laws. Regular employees are free to set up limit orders within their trading windows (eg sell if stock hits $200) if they want. Can’t subsequently cancel it though! It makes way more sense to just sell on the day of vesting and then trade shares that you’re not restricted from trading. No tax or other reason not to do this.


I’ve never worked at a public company that allowed limit orders to survive blackout periods.


I believe they are referring to a 10b5-1 plan that includes price-based sale triggers.


Regular employees can also make scheduled trading plans. ETP.


We couldn't at Twitter, which is the only company I've worked at that had a blanket trading blackout policy. The closest we could do was elect to sell all RSUs as soon as they vested (even if outside an open window).




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