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Restricted Stock & Control Stock Services
Your Company Stock & SEC Rule 144
Heightened public scrutiny and governmental oversight of "insider trading" have created complex restrictions for control persons, executives and key management personnel who buy and sell shares of their company stock that are considered to be control stock or restricted stock. Those who own control or restricted stock should be aware of SEC Rule 144, which imposes strict rules for buying and selling those shares, including:• Holding periods
• Volume limits
• Documentation and public-reporting requirements
Develop a 10b5-1 Trading Plan for Control & Restricted Stock
If you're considered an insider and are subject to the restrictions of Rule 144, you can develop a 10b5-1 trading plan, which will let you buy and sell shares of your company stock, even during "closed window" periods. Keep in mind, you must establish a 10b5-1 plan before you have knowledge of material, nonpublic information, and your trades must be executed by an independent third party.How A.G. Edwards Can Help You Trade Restricted & Control Stock
If you're subject to SEC Rule 144, your A.G. Edwards Financial Advisor can help you with the paperwork you'll need to complete before buying or selling control stock and restricted stock. He or she can also work with you and your company's legal counsel to customize a 10b5-1 trading plan that adheres to established company policy and meets your particular needs.