hey guys ECR G here and today we're talking about CEO selling stock does
that mean you should leave hey guys ECR G here and today we're doing a video
that was not submitted by anybody else you know was not left in the comment
section down below but this is a question that I had just because I had
seen this a lot sometimes you read articles about you know CEOs or top
level executives selling large amounts of stock or you see a CEO selling uh you
know buying a large amount of stock and what that really means for the employee
does that mean something good does that mean something bad you know if they're
selling the stock does that mean I I need to get the heck out of Dodge so
what what does that really mean and I did a little research on the internet
and found that it pretty much meant the same thing everybody was saying the same
thing that because of the regulations in place CEOs are privy to a lot of
information they know if a lot of new products are coming down the pipeline
and if the stock price is going to you know shoot up because of that they know
that you know that they have some big business coming in the future that the
stock price might go up so they have a lot of the information where they could
make even more money in this in the stock market if they're buying and
selling based on that information so pretty much when a CEO buys or sells a
large part of the stock they set up what is what is a plan well in advance to buy
and sell shares so you six months to a year in advance they may you know tell
somebody on their behalf that they want to sell this amount of shares you know
maybe get some cash in the bank account because a lot of their a lot of their
money comes from getting stock in options a lot like the amount of salary
they make is the smallest part of their compensation package the most of their
money comes from stock in options and that's specifically so that they are
encouraged to do a better job so the stock price will go up so sexually
they'll be getting more and more compensation
but they set up this plan in advance and they do that so they don't get tagged by
the regulator's saying they had some insider trading knowledge so the plan is
set up and then you know it gets executed on you know what's in whatever
day they decide to buy and sell and so that's what happens that's that's how
you know it comes out in the news that a CEO sold you know a hundred thousand
shares of their company and sometimes I it comes through in the company as well
it just so happens that coincidentally it could come at a time where the
company may be on the rocks or something and it may seem like that's a bad sign
but just know this the CEOs and the high-level executives they know well in
advance that they're gonna be buying or selling shares because you do not want
to get tagged by the regulators you have for insider trading that's that's bad
that's that's a huge crime that's what Martha Stewart went to jail for insider
trading and you know they want to avoid that as much as possible obviously so
just want to do this quick video on that what does that really mean for the
employees it really means nothing the employees because they knew that they
knew they were gonna be buying and selling you know months in advance so
doesn't really mean anything about the health of the company at that particular
time so hope you guys enjoyed that video just thought you guys would like that
knowledge did a little research on that before so thank you guys for watching
this video please like comment down below if you have any other questions
regarding that or maybe you have something to add to that as well I
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