6.1.8.3. Rule 10b5-1
In 2000 the SEC essentially codified the court decisions on insider trading by adopting Rule 10b5-1. Section (a) of that rule provides:
The “manipulative and deceptive devices” prohibited by Section 10(b) of the Act and Rule 10b-5 thereunder include, among other things, the purchase or sale of a security of any issuer, on the basis of material nonpublic information about that security or issuer, in breach of a duty of trust or confidence that