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It is funny that high management is never considered to be doing illegal insider trading (except for obvious missteps), but they're the ones responsible for cap
by coliveira 6y ago
It is funny that high management is never considered to be doing illegal insider trading (except for obvious missteps), but they're the ones responsible for capital allocation, stock/option grants, and all kinds of decisions that will impact financial results in the next quarter.
- justchilly 6y agoAnd their trades are typically scheduled in advance and public. Their job and fiduciary duty is to maximize shareholder value, and they make decisions so that happens. If that means allocating $ and rewarding people that will attain that goal, then what should be considered illegal?
- coliveira 6y agoThere is an obvious conflict of interest between the long term stability of the business and the actions necessary for the huge stock/options grants become profitable in the next few quarters. For example, when mergers and acquisitions should be approved, layoffs be announced, dividends increased, etc.
- deleted 6y ago[deleted]
- Gibbon1 6y agoAll the real money is in quid pro quo's.
- IncRnd 6y agoThis was just on HN the other day. Adam Rogas, who abruptly resigned from NS8 earlier this month, is accused of misleading investors who poured in $123 million to his company earlier this year, a deal in which he allegedly pocketed more than $17 million. CEO of Cyber Fraud Startup NS8 Arrested by FBI, Facing Fraud Charges - https://news.ycombinator.com/item?id=24518097 https://news.ycombinator.com/item?id=24518097 It wasn't insider trading, but it was financial fraud by a ceo.