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Unity bosses sold stock days before development fees announcement::Unity executives sold thousands of shares in the weeks leading up to last night’s hugely controversial announcement it …
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If you’re ever worried that these corporate assholes are never punished for their blatant shady behavior, don’t worry. They have to deal with raised eyebrows which we all know can be super embarrassing.
I dunno, if a government cares enough to look into this then the corpos might get some VERY sharp slaps on their wrists.
How’s that even legal.
Usually people at a company are not allowed to sell stock except during special windows. For people at the very top it’s restricted even further where they need to essentially plan to buy/sell stock well in advance. Essentially there is a huge delay to any stock decisions. So these sell offs were likely decided far in advance and once locked in cannot be changed.
For more details read https://www.investopedia.com/terms/r/rule-10b5-1.asp
the sale might not have been shady if scheduled, but the timing of the announcement which they have complete control over IS shady as fuck.
So basically it can be “legit” if they schedule the sale for a year out and the announcement for a year and a day…
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?
If they own shares, then they want the company to succeed. A better question is “why are they allowed to sell those shares until they quit?” And the answer to that question is that everyone with enough power to change this also enjoys the current system.
