Inside Trading Question

Discussion in 'Strategy Development' started by ANERESS, Jan 18, 2006.



    I have been watching a Ceo sell off his stock all month.( Watching the Sec Form 4) The stock keeps going up in price. In theory when a CEO starts to sell off his stock shouldn't the stock go down. Can someone please explain why this is not happening. Thank you for any thoughts....
  2. 1. "Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise”
    --Peter Lynch

    2. It is very hard if not impossible to predict or know where the very top will be. Large shareholders have to sell on the way up when there are still people who want to buy the stock. If they try to sell all their shares when it is on its way down, it will send the stock plummeting down.