The following list of questions are the most commonly asked regarding Apple’s 10b5-1 plan.
Can I sell future vesting RSUs? If so, how do I do it?
Yes, you can sell future vesting RSUs. Through the etrade.com 10b5-1 plan interface, enter in the date for after a future vest day. For example, if shares vest on 10/15, put in this date or later and the sellable shares will populate.
Does the 10b5-1 plan end after I leave Apple?
No, it does not. It will continue to stay in force unless the employee requests termination of the plan.
What is a cooling off period?
It is the waiting time required after the 10b5-1 plan has been created. No trades can occur during the cooling off period.
What is Apple’s cooling off period?
Apple doesn’t have a specific cooling off period. It is updated during each trading window. Typical cooling off periods are 60 days long.
Is there a minimum timeframe required for a 10b5-1 plan?
There is not. Due to the required cooling off period though, it doesn’t make sense to have a plan shorter than 6 months. Realistically, a 10b5-1 plan timeframe should be for at least 1 year.
Do I have to put every Apple share in a 10b5-1 plan?
This is not required. Some or all of an employees’ shares can be put in a 10b5-1 plan. During the 10b5-1 plan creation, specific shares are designated as well as the future price at which they are to be sold. Not every share of AAPL is required to be in the 10b5-1 plan.
How do I sell AAPL shares that are not in my 10b5-1 plan?
E-Trade requires employees to call in to place a non-10b5-1 AAPL stock sale trade. This is a safeguard to ensure the employee isn’t accidentally selling shares that are within the 10b5-1 plan.
What orders are allowed in a 10b5-1 plan?
Market orders and limit orders. Options, hedging and short sales are not allowed.
Is the plan easy to terminate and then re-create?
The termination and re-creation of a 10b5-1 plan is not logistically difficult. However, regular termination and re-creation of a 10b5-1 plan is frowned upon by Apple and E*TRADE.
Please feel free to schedule a call here if you want to discuss a 10b5-1 plan and if it makes sense for you.
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