SEC Buyback rules. Hope this helps.....
On any single trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. , the company can't purchase more than the greater of either one round lot (100 shares) or the number of round lots that is closest to 25% of the company's stock's average daily trading volume in the four previous calendar weeks.
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:
* A price of $200,000 or more.
* At least 5,000 shares and a price of $50,000 or more.
* At least 20,000 shares and 150% of the stock's average daily trading volume (excluding block trades) for the preceding four calendar weeks.
"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 Market manipulation describes a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a stock. 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 supply--demand imbalance, forcing the stock price down. That would not be good for the other investors.
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