Insider Sales Question

Discussion in 'Stocks' started by Tom631, Oct 25, 2007.

  1. Tom631


    When looking at insider sales on a stock at yahoo I see at times its list sales by the CEO and other officers and it says

    Automatic Sale at so and so price

    What does an automatic sale mean?

    I'm confused by the word automatic.
  2. It all depends on the stock options contract the executives have but usually the options will automatically be converted to stock right before the expiration date to help eliminate suspucion of insider trading...
  3. Tom631


    Ok.thanks. I was wondering about WellCare Health Plans whose offices got raided by the FBI and other agencies and their stock has lost like 70% this week.,+

    When I clicked on Insider Transactions, see all those sales and no buys?
    I was just wondering if they knew something was about to come down but it says..."Automatic Sales"