Add this,(notice block trades)from journalofaccountancy.com>>>> The volume restriction in the safe harbor allows an exception for block purchases. That can increase a program's flexibility significantly. To qualify as a block, the stock purchase must have at least one of the following characteristics: "So if there is a big chunk of shares out there—and often these are privately negotiated trades that are not on the market—that trade isn't included in the volume restriction," Donegan says." The idea is that there isn't the opportunity for market manipulation when the company is buying a large block back from one stockholder." In fact, if such a large block were to be thrown into the open market, it would probably cause a supplydemand imbalance, forcing the stock price down. That would not be good for the other investors. CPAs should ensure that their company has "a firm, and regularly adhered to, insider trading policy about which employees, officers and directors and others have been informed, and about which they are regularly updated and reminded," Barnard says. The corporate repurchase program should conform to that insider trading policy. At most companies, that means that employees must clear purchases of the company's stock in advance through the legal department. Accordingly, any executive with potential inside information should inform the legal department that it should veto any repurchases.
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