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My understanding was that in SEC filings companies have to very direct about things like this. Like in the pre IPO filing a lot of companies will say something
by dopamean 5y ago
My understanding was that in SEC filings companies have to very direct about things like this. Like in the pre IPO filing a lot of companies will say something like "we've lost money the last 3 quarters and it's entirely possible we'll never make any money." That is a true statement that they have to say but surely they don't expect to never make money. I wonder if this statement is like that.
- danuker 5y ago> but surely they don't expect to never make money. At least for IPO'd companies, you can see if they put their money where their mouth is by looking at what insiders do with their own stock. http://www.openinsider.com/ http://www.openinsider.com/
- sarah180 5y agoInsiders are often very overexposed to a single company because it's their primary form of compensation. You can sell every share you have and still be overexposed due to unvested shares. I would advise against interpreting "I don't want to tie my life savings to this company" as a lack of faith.
- danuker 5y agoAbsolutely. But I suppose if you still hold some vested stock, it might mean you are optimistic in spite of the high exposure.