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> Do you have a source for your first claim that cancelling to avoid a loss is insider trading?

Yes: https://www.sec.gov/rules/final/33-7881.htm.

The purpose of a prearranged stock plan is that it's autonomous and outside the control of insiders with privileged, confidential information. Making any decision with regards to the plan once it has been adopted, either to trade or not to trade, voids that autonomy.



>the purchase or sale of a security of any issuer

I don't see where they ban refraining from trading.




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