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To avoid this couldn't an exec announce their intention to sell as public and early as possible and cite "divorce/third house/mega yacht" as the reason for the

by TomK32 9y ago

To avoid this couldn't an exec announce their intention to sell as public and early as possible and cite "divorce/third house/mega yacht" as the reason for the sale?

zwily 9y ago
Any counsel worth their salt won’t let them trade if there is any non-public material news, no matter what other reasons there may be for selling. This is why most high level execs will put in place pre-arranged plans (10b5-1) for selling at different thresholds and time periods.
- pishpash 9y ago
  Pre-arranged is the only clean way. Don't mess with the Feds.
  - seibelj 9y ago
    The government is slow and misses a lot, but they are methodical, and if they smell something they will pursue it. They have unlimited resources and their only limit is the statute. Never underestimate them.
currymj 9y ago
Lou Pai famously sold his Enron stock in a divorce settlement, after his wife left him because of an affair with a stripper. He got away with $280 million and no insider trading charges. He and the stripper are now married and spend their time training dressage horses.
- TomK32 9y ago
  You gotta love that happy end.