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That’s really about not falling foul of insider trading laws. Regular employees are free to set up limit orders within their trading windows (eg sell if stock hits $200) if they want. Can’t subsequently cancel it though! It makes way more sense to just sell on the day of vesting and then trade shares that you’re not restricted from trading. No tax or other reason not to do this.



I’ve never worked at a public company that allowed limit orders to survive blackout periods.


I believe they are referring to a 10b5-1 plan that includes price-based sale triggers.




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