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| Subject: SEC Rule 10b-18 In 1982, the US Securities and Commission adopted Rule 10b-18,4 which provides that an issuer will not be deemed to have violated Sections 9(a)(2) and 10(b) of the Exchange Act, and Rule 10b-5 under the Exchange Act, solely by reason of the manner, timing, price, or volume of its repurchases, if the issuer repurchases its common stock in the market in accordance with the safe harbor conditions. Rule 10b-18’s safe harbor conditions are designed to minimize the market impact of the issuer’s repurchases, thereby allowing the market to establish a security’s price based on independent market forces without undue influence by the issuer. The practical effect of this rule was to encourage massive stock buybacks by corporations as a means of manipulating prices upwards in order to give value to executive stock options. Corporate governance By John Schroy, on March 10th, 2010 |  Leave a comment  The webcast, This Week in the Boardroom, for February 25, 2010, discusses the issue of stock buybacks with Stephen Lamb, partner of Paul Weiss, a large international law firm prominent in the securities industry. Wall Street seems to have learned little from the Crash of 2008. The big law firms understand that the safe harbor provided by SEC Rule 10b-18 is still firmly in place; shareholders will continue to be defrauded by employee-directors with impunity. March 10th, 2010 | Print Article |  Email Article |  Topics: Corporate Governance, fraud, NYSE, Paul Weiss, SEC Rule 10b-18, Stock Buybacks | Category: Stock Buybacks | Leave a comment |  Short urlAs goes January? By John Schroy, on February 26th, 2010 | Leave a comment  Foreign investors and mutual fund shareholders were the primary buyers behind the Bear Market Recovery of 2009. Stock buybacks had disappeared, a significant modification in investor/issuer behavior that had been seen since 1982 and SEC Rule 10b-18. The rally hit a peak in January 2010, reminding many of the saying, “As goes January, so goes the year”. February 26th, 2010 | Print Article | Email Article | Topics: Baby Boomers, Ben Bernanke, Corporate Governance, dividends, Dow Jones, executive stock options, hedge funds, Inflation, insurance company, Leverage, mutual funds, SEC Rule 10b-18, Stock Buybacks, US SEC | Category: US Equities | Leave a comment | Short urlEquity repurchases: By John Schroy, on September 30th, 2009 | Leave a comment  Stock buybacks failed to dominate the US equity market in the second quarter of 2009. Non-financial corporations were net issuers of equities for the first time in many years. Lack of corporate cash and a need to reduce leverage seem to be what’s driving the market. However the SEC has not revoked Rule 10b-18 and stock buybacks still have a lot of support. Will stock buybacks return with better times? September 30th, 2009 | Print Article | Email Article | Topics: Common Stock, SEC Rule 10b-18, Total Returns | Category: Stock Buybacks | Leave a comment | Short urlFeatured articles on inside pages
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