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Look at it from the buyer side: Employees know what deals are on the table waiting to close, and new product announcements, and all sorts of things related to
by jpdoctor 14y ago
Look at it from the buyer side:
Employees know what deals are on the table waiting to close, and new product announcements, and all sorts of things related to the stock.
If they think the stock is going to double in the next 6 months, do you still think they'd sell? Even if they say "It's my money and I need it now!" brokers would be happy to offer a loan using the shares as collateral for any immediate money needs.
If somebody is selling, they don't think the shares are about to double, plain and simple.
- adestefan 14y agoYou also don't have to sell all of your shares. I could cash out 25% now and keep 75% for when it doubles. Some times cash is king.
- jpdoctor 14y agoIf cash is king, then 2x cash = 2x king. Again: If you know the stock is about to double, you go get a loan against the shares. Sellers do not believe this.