Replies to post #422731 on InterDigital Inc (IDCC)

[mickeybritt]

JimLur

If you say so. I didn't know that was the way business was conducted. Of course I just don't have your knowledge of trading stocks. I thought
the company was restricted from buying shares or selling shares except
during certain hours the market was trading. I also didn't know people'could make side arrangement with market makers. Guess we learn
something new every day.


JMO
Mickey

[mickeybritt]

JimLur

Does this rule show anywhere a company can enter into a special agreement
with a market maker to buy or sell shares?

BREAKING DOWN 'Rule 10b-18'
Rule 10B-18 covers the manner of purchases, the time of the repurchases, the prices paid and the volume of shares repurchased. Compliance with the rule is voluntary. However, in order to fall within the safe harbor, each of the four conditions must be satisfied daily. Otherwise, repurchases will not fall under the safe harbor for that particular day.

Origin of Rule 10B-18
The Securities and Exchange Commission (SEC) instituted the rule in 1982. This allowed a company's Board of Directors to authorize the repurchase of a certain amount of shares. Subsequently, the company could purchase shares as long as it adhered to those four conditions.

In 2003, the SEC amended the rule, requiring companies to disclose more detailed information on share repurchases on forms 10Q, 10-K, and 20-F.

The Four Conditions
Manner of purchase: The issuer or affiliate must purchase all shares from a single broker or deal during a single day.
Timing: An issuer with an average trading volume less than $1 million per day or a public float value below $150 million is unable to trade within the last 30 minutes of trading. Companies with higher average-trading-volume or public float value can trade up until the last 10 minutes.
Price: The issuer must repurchase at a price that does not exceed the highest independent bid or the last transaction price quoted.
Volume: The issuer can't purchase more than 25% of the average daily volume.
The SEC also specified more detailed disclosure requirements for repurchases. In each quarterly report on Form 10-Q and in the annual report on Form 10-K, the company must provide a table showing, on a month-by-month basis: the total number of shares purchased, the average price paid per share, the total number of shares purchased under publicly announced repurchase programs, and the maximum number of shares that may be repurchased under these programs (or maximum dollar amount if the limit is stated in those terms).

Even though the rule provides safe harbor, the repurchases must be reported in compliance with the various regulations. The safe harbor is not available if the repurchases were made in an effort to evade federal securities laws.



Read more: Rule 10b-18 https://www.investopedia.com/terms/r/rule10b18.asp#ixzz5Gl3WAvzK
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[vegas options]

JimLur, you are correct.