A 10b51 stock plan is a plan designed to provide company insiders with the ability to trade their company stock at regular intervals throughout the year, 10b5-1 trading plans allow insiders and issuers to buy and sell company stock provided the transaction is made as part of a pre-determined, systematic trading plan and certain conditions are met.  Assuming those conditions are met, the plan is said to have "safe harbor" status with the SEC pursuant to Rule 10b51.  This strategy can be an effective planning tool for executives who have a concentration of wealth in one stock.

Last updated on May 14, 2009 by Jack Parsons