InterDigital Inc (IDCC)

[olddog967]

Vegas: Although I no longer have any IDCC stock, I still like to follow the board postings.

I doubt it was the company doing a stock buyback durng the last ten minutes of that trading day. In order to avoid a potential insider trading charge SEC 10b-18 has 4 rules that a company is required to follow when repuchasing stock. Following the rules gives a company a so called “safe harbor” against any charges. One of the rules is that an IDCC sized company is restricted from trading during the last 10 minutes of the trading day.

“(2) Time of purchases. Rule 10b-18 purchases must not be:
(i) The opening (regular way) purchase reported in the consolidated system;
(ii) Effected during the 10 minutes before the scheduled close of the primary trading session in the principal market for the security, and the 10 minutes before the scheduled close of the primary trading session in the market where the purchase is effected, for a security that has an ADTV value of $1 million or more and a public float value of $150 million or more;”
https://www.law.cornell.edu/cfr/text/17/240.10b-18

Currently there is a revised rule change under considertion that would require a company to give more information about stock repurchases.

https://www.journalofaccountancy.com/news/2021/dec/sec-addresses-share-buyback-disclosures-insider-trading-rules.html