Comment on Unity bosses sold stock days before development fees announcement
dangblingus@lemmy.world 1 year ago
It’ll be my ignorance, but how are you allowed to own stock in the company you’re on the C-level of? Wouldn’t your direct control of the company, and the ability to buy and sell stock, be seen as insider trading?
Album@lemmy.ca 1 year ago
Many company boards (of which CEOs sit at) have requirements where they must vest a minimum dollar amount into acquiring company shares. The purpose of this is to ensure they have an interest in the success of the stock and thereby the success of the company.
These same companies will then additionally have blackout periods typically 30 days before the announcement of quarterly earnings where they are restricted from selling shares.
Not sure what unity’s board rules are but if they are a public company it should be in their investors materials, annual reports, etc
dangblingus@lemmy.dbzer0.com 1 year ago
Hard not to see selling stock, as an executive, as confidence inspiring.
Album@lemmy.ca 1 year ago
All execs sell their own stock all the time. You’re just aware of it today for one company so it seems like an issue.
Riccitiello has 3 million shares. He sold 2k (.06%) recently and 50k (1.5%) YTD.
You should also be made aware that when you are identified as a director of a company, trades like this are generally automatically scheduled due to MNPI regulations.
www.gurufocus.com/stock/U/insider
Tim Apple sells about a million shares of AAPL every year, while holding roughly 3M continuously. Likely all pre-planned on a schedule.
www.gurufocus.com/stock/AAPL/insider
Corkyskog@sh.itjust.works 1 year ago
It’s common for executives compensation to be partly in stock or stock options, so it’s not uncommon for them to execute and sell.