There is a rule 10b-105 or something. Executives have to plan and document stock buys and sales before executing them. Intent was to prevent abuse if inside info.
So how effective is it? Not very. The law allows executive to cancel plans Change target buy or sell price. So if they are aware of bad news they can do unplanned sale. Or unplanned buy if anticipated news good.
CEOs across the board have been making a killing.
Re: these executives are brilliant
Is this in the US?
If the law is in place then how is it possible that all these loopholes you mentioned werent already thought of while making the law?
Agreed that its completely wrong and definitely gives the CEO’s an edge over the common trader to know which shares will work, which wont ..
Re: these executives are brilliant
The laws were created with loopholes in place. The executives don’t even have to reveal what changes they made - the company spokesman issues statement that the law requirement has been met. Laws do favor the well heeled.
Re: these executives are brilliant
What I dont understand is that , by leaving these loopholes open, is the law not giving out a wrong message that this whole share business is not trust worthy, that if someone knows internal information, they can make better money and better choices ..
Why should an ordinary man then put their resources into the share market?