[andsoitis]

> form of insider trading

Rule 10b-18 is designed to prevent companies from using buybacks to manipulate the market, stating that share buy backs must meet 4 conditions:

1. all shares must be purchased during a single day and from a single broker or via a single deal

2. larger companies cannot authorize buybacks within the last 10mins of the day and smaller companies can't authorize them within the last 30 mins

3. companies have to buy back their stocks at a price lower than or equal to the highest independent bid

4. companies can't buy back more than 25% of the average daily volume