Replies to post #251 on A Post Collection of IHUB's Greatest Hits

[di4]

Posted by: Jim Bishop Date: Monday, April 28, 2008 1:53:38 PM
In reply to: blockbuster who wrote msg# 43700 Post # of 58875
There are rules to follow regarding buybacks.

Rule 10b-18 -- Purchases of Certain Equity Securities by the Issuer and Others

Rule 10b-18 provides an issuer (and its affiliated purchasers) with a "safe harbor" from liability for manipulation under sections 9(a)(2) of the Act and Rule 10b-5 under the Act solely by reason of the manner, timing, price, and volume of their repurchases when they repurchase the issuer's common stock in the market in accordance with the section's manner, timing, price, and volume conditions. As a safe harbor, compliance with Rule 10b-18 is voluntary. To come within the safe harbor, however, an issuer's repurchases must satisfy (on a daily basis) each of the section's four conditions. Failure to meet any one of the four conditions will remove all of the issuer's repurchases from the safe harbor for that day. The safe harbor, moreover, is not available for repurchases that, although made in technical compliance with the section, are part of a plan or scheme to evade the federal securities laws.


Regardless of whether the repurchases are effected in accordance with Rule 10b-18, reporting issuers must report their repurchasing activity as required by Item 703 of Regulations S-K and S-B and Item 15(e) of Form 20-F (17 CFR 249.220f) (regarding foreign private issuers), and closed-end management investment companies that are registered under the Investment Company Act of 1940 must report their repurchasing activity as required by Item 8 of Form N-CSR (17 CFR 249.331; 17 CFR 274.128).