Like I previously stated, it's the law:
Stock buybacks: the rules.
by Ed McCarthy
Toeing the line on the inside track.
EXECUTIVE SUMMARY
* STOCK REPURCHASE PROGRAMS CAN POSE PROBLEMS for financial executives because they may raise concerns at the SEC about insider information and stock manipulation.
* IF THE COMPANY HAS MATERIAL INFORMATION that has not been made public it should not buy back stock.
* BOARD AUTHORIZATION FOR PURCHASE OF that company's stock for the corporate treasury should specify:
* The maximum amount of money to be spent, or the maximum number of shares to be acquired.
* The rationale for the program.
* The time period covered.
* GETTING A WRITTEN AGREEMENT from the broker that the program will follow SEC Rule 10b-18 is a good idea. It should specify that:
* The company and affiliated purchasers may work with only one broker or dealer on any single day.
* The company may not buy on the opening trade on the NASDAQ National Market or during the last half hour of scheduled trading.
