910
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 05 Jun 2024
910 points (98.7% liked)
News
36221 readers
366 users here now
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious biased sources will be removed at the mods’ discretion. Supporting links can be added in comments or posted separately but not to the post body. Sources may be checked for reliability using Wikipedia, MBFC, AdFontes, GroundNews, etc.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source. Clickbait titles may be removed.
Posts which titles don’t match the source may be removed. If the site changed their headline, we may ask you to update the post title. Clickbait titles use hyperbolic language and do not accurately describe the article content. When necessary, post titles may be edited, clearly marked with [brackets], but may never be used to editorialize or comment on the content.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials, videos, blogs, press releases, or celebrity gossip will be allowed. All posts will be judged on a case-by-case basis. Mods may use discretion to pre-approve videos or press releases from highly credible sources that provide unique, newsworthy content not available or possible in another format.
7. No duplicate posts.
If an article has already been posted, it will be removed. Different articles reporting on the same subject are permitted. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners or news aggregators.
All posts must link to original article sources. You may include archival links in the post description. News aggregators such as Yahoo, Google, Hacker News, etc. should be avoided in favor of the original source link. Newswire services such as AP, Reuters, or AFP, are frequently republished and may be shared from other credible sources.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
founded 2 years ago
MODERATORS
Isn't that the definition of insider trading? Lock him up like Martha, she did way less and served time in a prison resort.
I need to look up how "insider trading" even works.
When you are the CEO, and you make decisions, and you own your own stock - wouldn't everything you ever do be with insider info? It is just honor system pinky-promise to act in good faith? I mean that sounds super effective.
Well no, there is backsies. You can rescind your intent to sell within a couple days. What most CEOs do is set up regular sells every month way in advance, then choose not to sell unless its opportune at the last minute. If that sounds like it completely defeats the purpose of the rule in the first place, yep! The system is rigged.
Wouldn’t say completely. The notice of intent to sell is not there to prevent CEOs from selling when they want to, it’s to notify you that they could sell this much if they wanted to.
The purpose is just to say that you need to be prepared for a potential sale. If the CEO keeps backing out of a sale, that does hurt your ability to predict when they will but not how much they could sell and therefore how much those sales could potentially affect your investment.
All of that is strategic because otherwise investors could conceivably do the opposite and sell before the CEO is forced to sell and then buy his shares at a lower price. That would mean the stock would tank every time the CEO went to sell. The problem exists because most of the solutions are even worse
That's a fair point, thank you! I was mostly commenting because that rule gets brought up every time someone talks about insider trading (and musk specifically) as a defense and it's deeply irritating. It makes sense the rule is more about not hobbling CEO investment than insider trading since it really doesn't do much to prevent the latter.
Everything you said makes a lot of sense, but this drives it home... The stock market is so unbelievably ridiculous. It's just unmanageable, it's such a simple idea with such horrible effects it might be a great filter
At my workplace we are only allowed to sell stocks within certain windows, usually it's a brief period immediately after we publicly release earnings. I think for higher ups it's even more restrictive.
We had a 2 week window 2 or 3 days after earnings were released.
Edit: You could preschedule sales though like recurring once a month, but it wouldn't take effect immediately. I can't remember what the delay on that was, but it might have been starting after the next earnings?
I've known people at IC level sell outside of windows and barely get a mention. Some people have odd vesting schedules for things like RSU's, so sometimes it's unavoidable.
At higher levels, it's locked down considerably. My old director said that he had to have a meeting to go through a sale of his stock, so that it could be approved to be out of a window of potential releases in the company outside of his own division. I imagine that at VP+ level you need accountants just to handle what is a few clicks for an average corp worker.
Felon Musk
"Felonious Musk" might be a good nickname.
That's only the 5th time he commits fraud. He has been at court several times because of his actions. It seems no one really wants to arrest him
He should run for president. He can claim the long form version of his birth certificate says he was born in Hawaii.
Yes but you see, he is a billionaire... Insider trading and other laws are for the pauper rich
I love how resort is tacked on there at the very end. Like you read it in a quiter voice.
Well, she did spend time in Club Fed