Trading window restriction applies after you leave company?

Synactive / Eng
PimplePete

Go to company page Synactive Eng

PimplePete
Mar 23, 2021 5 Comments

Let's say I was part of public company ABC, and they had a trading restriction in place right now and I quit the company. Does the restriction still apply to me?

Is there a general rule or is it different for every company?
#personalfinance #trading #investments

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TOP 5 Comments
  • PayPal
    aaaaabbbbb

    Go to company page PayPal

    aaaaabbbbb
    For a public company, I always assumed that "company policy" restrictions disappear once one leaves, but insider trading restrictions continue.
    Mar 23, 2021 0
  • Snap
    tSgp34

    Go to company page Snap

    tSgp34
    Yes, pretty sure it does at the minimum until the next earrning call. Assuming you don't know any material info that might last longer. I am not a lawyer so this is not advice lol
    Mar 23, 2021 0
  • Google / Eng
    πŸ‘β˜οΈ

    Go to company page Google Eng

    πŸ‘β˜οΈ
    Violating the policy while you work there is bad because it can get you fired + looks extremely suspicious to the SEC. Violating the policy after you leave looks just as suspicious to the SEC, if not more. If you end up making a lot of money on a trade and get investigated, your life will be hell even if you did not trade on insider information. So it's best to wait till the end of the window after you leave.
    Mar 23, 2021 0
  • Google
    QNCi64

    Go to company page Google

    QNCi64
    Is this for a public company or a pre-IPO?
    I can answer for pre IPO - the standard lockup applied even for ex employees. Your shares will be kept at a transfer agent like ComputerShare till the lockup expires.
    Mar 23, 2021 1