# Prof. David Yermack explains the significance of 10b5-1 stock trading plans for executives

1 Faculty News June 12, 2013 ![Wall Street Journal logo](/sites/default/files/styles/246w/public/assets/images/wsjlogo.jpg?itok=5Qt0z3WX)>

Excerpt from [The Wall Street Journal](http://online.wsj.com/article/SB10001424127887324049504578541821613302146.html?mod=ITP_marketplace_0) -- "'The whole point of these plans is that if material events occur, as they inevitably will, the insider has an alibi against insider-trading accusations,' said [David Yermack](http://www.stern.nyu.edu/faculty/bio/david-yermack), a finance professor at the New York University Stern School of Business."

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