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As a director in a public company, he is very restricted in when and how he sells his stock. In one case I know of that meant placing sell orders 3 - 6 months i
by fraserharris 11y ago
As a director in a public company, he is very restricted in when and how he sells his stock. In one case I know of that meant placing sell orders 3 - 6 months in advance regardless of the stock performance.
- jhulla 11y agoInsiders can file 10b5-1 plans - committing to a sales plan in advance. "These plans are widely used by officers and directors of public companies to sell stock according to the parameters of the affirmative defense to illegal insider trading available under Rule 10b5-1, which was adopted by the SEC in 2000." http://corpgov.law.harvard.edu/2013/02/05/rule-10b5-1-plans-what-you-need-to-know/ http://corpgov.law.harvard.edu/2013/02/05/rule-10b5-1-plans-...
- ChuckMcM 11y agoI understand the lack of discretion, I've been an "insider" more times than I would have liked but also look at the link on 10b5-1 plans @jhulla posted. I don't know what Marc did or didn't do, but it could easily have been "sell stock when the net proceeds of the sale will be $100/share or more, up to half my class A holdings. A perfectly legit 10b5-1 which would have resulted in exactly what we saw here. In February Barron's reported Andreesen's sales as being directed by a 10b5-1 plan: http://www.barrons.com/articles/SB51367578116875004693704580445820456979334 http://www.barrons.com/articles/SB51367578116875004693704580... so he's clearly familar with the process.