eli5 if most company’s ceo are payed in stocks, what’s preventing them from literally doing insider trading
In: 7
It’s illegal. The Securities and Exchange Commission is careful to watch for these sorts of things and will quickly prosecute insider trading.
Most companies keep their leadership from insider trading by requiring them to file any stock sale plans well in advance. If the CEO wants to sell stock, they have to file a plan with the company that sets out when they will sell the stock, how much they will sell it for, and other information.
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