Rule 10b5-1 plan

A Rule 10b5-1 plan is a legal agreement that lets company insiders (like executives) sell their own stock on a predetermined schedule without worrying about insider trading accusations. Here's why it matters: insiders have access to confidential information, so the SEC (the agency that regulates stock markets) has strict rules about when they can trade. A 10b5-1 plan lets them set up automatic sales in advance—say, "sell 1,000 shares every quarter"—and then execute those sales without timing them around secret company news. It's basically a way to say, "I planned this before I knew anything material." You'll see these disclosed in SEC filings whenever executives want to diversify their holdings without legal headaches.