3 ms·
> He can sell his shares when he feels like it. I thought that as a corporate officer he kind of can't sell his shares when he feels like it? My layperson's u
by empathy_m 3y ago
> He can sell his shares when he feels like it.
I thought that as a corporate officer he kind of can't sell his shares when he feels like it?
My layperson's understanding is that people like him have to decide in advance when they're going to sell shares and tell the SEC (by filing a 10b5-1 with a preset sales schedule and cooling-off period before sales start). I thought that the most control he would get is choosing to suspend the plan (i.e. keep shares instead of selling them on the pre-decided date).
Are there other ways he can sell his shares whenever he wants? Can he borrow using them as collateral whenever he likes, for example?
- macksd 3y agoAs I understand it, the law is that they're not allowed to trade while in possession of material, non-public information, but beyond that most of the practices are there to just entirely avoid the suspicion or appearance of foul play. Sometimes executives are allowed to trade during windows immediately after announcing results, etc. The law would still dictate that they do not trade if they know about upcoming acquisitions or changes, etc. but someone would still have to prove that, and it's a risk that is removed if the executive just follows a preset schedule.
- bradjohnson 3y agoThis is my understanding as well. It's also my understanding that it's not illegal to coordinate with other executives when you're selling throughout the year and then drop news that influences the price in a particular direction just before or after time of sale in order to ensure that you profit.