May 02, 2022

Insider Share Sale Plan Under Scrutiny; Financial Times Enlists VerityData

Insider Sales SEC ABT

In an article examining increased scrutiny from both investors and the SEC regarding the insider use of 10b5-1 plans, the Financial Times turned to VerityData and Director of Research Ben Silverman.

Insider sales under 10b5-1 plans have grown significantly since 2004, the year VerityData | InsiderScore began gathering the data.

The article highlighted how quickly insiders could sell stock after setting up a 10b5-1 plan, something that could be regulated by the SEC by the end of 2022.

“The issue is this type of short time between adopting a plan and selling is really contrary to the spirit of the 10b5-1 regulation,” said Silverman.

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