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

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Published Jun 12, 2016
DOI https://doi.org/10.7916/cblr.v2016i1.1734

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Taylan Mavruk
H. Nejat Seyhun

Abstract

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.

Author Biographies

Taylan Mavruk

Assistant Professor of Finance, University of Gothenburg

H. Nejat Seyhun

Professor of Finance and Jerome B. and Eilene M. York Professor of Business Administration

Article Details

Issue
Vol. 2016 No. 1
Section
Articles
How to Cite
Mavruk, T., & Seyhun, H. N. (2016). Do SEC’s 10b5-1 Safe Harbor Rules Need To Be Rewritten?. Columbia Business Law Review, 2016(1), 153–183. https://doi.org/10.7916/cblr.v2016i1.1734

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