How could a senior executive of a company sell any of that company’s stock without it being insider trading?
In: Economics
“insider trading” does not apply to any trade, it applies to trades based on “inside information” that the public does not have access to
so if Tim Cook wants to buy a yacht and needs to free up $100 million in cash by selling some Apple stock, he can do that. Generally key executives need to file with the SEC before making large trades to that they are public knowledge in advance
if Tim Cook knows that Apple is going to sink 10% because of a bad quarter, he CANNOT trade on that information before it is made public. And he can’t tell his brother to trade on that information either
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