Hello! Firstly I'm sorry for my English, I'm not from US and don't have enough practice in communication only reading. Stockmarket is very interesting thing and I try to get information about investing instruments all over the world which is not exist on stockmarket in my country. For several days I try to understand DRIP (I know it available only for residents). I found many sites which contain information about different types of plan. But I can't understand where companies get stocks for DRIP? On several sites I found information that they get it from treasury reserves, but also I found that US companies create treasury stocks through buyback, so SEC controls buybacks and restrict it by Rule 10b-18 and in letter on sec.gov I found that (https://www.sec.gov/rules/proposed/s75002/cleary1.htm) "In addition, under existing rules acquisitions effected by an "agent independent of the issuer" in connection with an issuer employee benefit plan are exempt from the definition of "Rule 10b-18 purchase" and from the trading prohibition of Regulation M. Similarly, such acquisitions should be exempt from the proposed issuer repurchase disclosure rules." So if you buyback stocks for treasury reserves you don't need disclosure information about this action? Also I found in wiki that treasury stock can not exceed the maximum proportion but I can't found it in SEC documents. I know that in some countries comapnies can not exceed propotion and have limited hold time. It means that if you (as Company) want to use treasury stocks for any plan you must disclosure info about buyback for this plan to avoid market manupilation, but also you can use quasytreasure stocks (it's not prohibited to hold such stocks by affilated company) without buybacks but you must disclosure decision of board of directors about the decrease of ownership. Is there any restrictions about proportion and hold-period? So can you help me with 3 questions: 1) where companies get stocks for DRIP? 2) if you buyback stocks for treasury reserves you don't need disclosure information about this action? 3) Is there any restrictions about proportion and hold-period for treasury stocks in US? Thank you!
