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Intel CEO's massive stock dump raises eyebrows
- qubex 9y agoThere’s a flaw in this thinking that conceals a subtle but inherent paradox that should serve as a signpost. Him not selling some shares regularly according to the pre-arranged plan would function as a marker that there’s trouble on the horizon and would scare investors into pre-emptying the drop in value with stock sales. That’s the whole point of awarding shares and announcing a sale plan ahead of time and sticking to it come what may: it avoids leaking information into the market (as per the more stringent interpretations of the Efficient Market Hypothesis). It’s also why the market didn’t follow suit after his sale and take a nose-dive on the suspicion of trouble: because since it was pre-announced and known it added no new information. As the article notes: he’s an engineer and can do the math, and quite surprisingly what he did was (also) the least harmful thing he could inflict on his fellow stock-holders.