Question for those who know Stocks and or typical policy

[XLexusTech]

Just curious for those in Employee stock purchase plans or investors who would know.
Is it typical that Sr. Executives be excluded from company imposed Stock sale blackouts?



Thanks for any info
Happy Holidays.

[absintheisfun]

That depends entirely on the company policy. Every company has their own rules regarding the sale of optioned stocks.

Also, it depends on where the stocks were purchased, or how they came into their possession.

For example, I am a VP of Z company and I have 500,000 shares of our stock.
200,000 came from stock options as part of a bonus
200,000 came from an employee purchase program (discounted)
100,000 were purchased on the open market.

No matter the policy, the 100,000 that I bought on the open market don't fall under the controlling rules of the company. It is risky to sell them during a blackout period though because it could be considered inside trading since most blackout periods come around financial disclosure times.

[XLexusTech]

Thanks for the reply. Assume they were the first two, 90+ % Bonus based grants or Options and a small portion ESPP

[wmhjr]

Just a clarification. If you are listed by your public company on the list then you are prohibited from ANY stock transactions Which might be the result of either temporary or constructive access to what the SEC considers "material" information. Blackout periods are often the period between when financial or sales data is known by company leadership but not yet reported publicly. Normally any transactions during that period by part of the management team would be very risky. It doesn't matter where the shares were from.