3 ms·
There were $256.9m of trades on FB stock ~14m49s before he announced the story on his timeline. Two trades of 4,287,969 shares. What is likely to have happened
by ddol 14y ago
There were $256.9m of trades on FB stock ~14m49s before he announced the story on his timeline. Two trades of 4,287,969 shares.
What is likely to have happened here? Did an institutional investor get wind of the story early? If so, why did the share price jump up?
- bertil 14y agoMost likely the Financial department processing his stock—I have little clue of how vesting options works on that side, but I'm assuming they owe him something priced along his departure.
- malandrew 14y agoIf your departure from a company is a material fact by virtue of the position you hold, does it make it insider trading to dump your own shares in a company you are leaving?
- phil 14y agoI'm pretty sure the answer to your question is yes. Typically, if you're in a position where you'll often have material non-public info you need to create a trading plan in advance, or otherwise remove your ability to trade the company based on all the secret stuff you're always going to be knowing. Look at it that way and for the CTO of a large public co., their own departure is just going to be the last of many, many pieces of info make it problematic for them to trade the stock.