many times CEOs cannot sell stock because doing so might signal to others that something bad is going to happen at that company. I recall a story of a company that was doing well, had customers, and good stock. then suddenly overnight the stock tanked. after researching for a while they found out what the cause was. one of the c-level employees / founder wanted to pay for his daughters wedding so he sold some stock. due to that some algo traders had programmed to sell stock if the founder sells. other algo traders programmed only to sell if both the founder and some other traders sell. well, this spiraled out of control until the market closed for the night.
vastoi|6 years ago