Rule 10b5-1 plan

A Rule 10b5-1 plan is a legal arrangement that lets company insiders (like executives or board members) sell their own stock on a predetermined schedule without worrying about insider trading accusations. Here's why it matters: insiders have access to private company information, so the SEC has strict rules about when they can trade. A 10b5-1 plan lets them set up automatic sales in advance—before they learn any secrets—so their trades look legitimate. You'll see these disclosed in SEC filings whenever a CEO or executive announces they're selling shares. For example, if a VP sets up a plan in January to sell 1,000 shares monthly, those sales happen automatically regardless of what happens at the company later.