You could research how much stock these guys have left, and how much is in the form of options that have not yet been exercised.
They didn't buy stock at $400. They got stock grants and/or options with a low strike price, meaning they could still profit tremendously by selling their stock when it was $380.
Why on Earth wouldn't they at least wait until the new iPhone and/or iPads release and the stock subsequently goes up for a period?
Because it can be construed as insider trading by the SEC. Therefore, companies like Apple have dates in which employees can not buy or sell AAPL stocks. There are also windows in which they can exercise their options or vested stocks. And these windows are often weeks before or after any announcements that may cause big movements in the stock. Not only that, these employees must put their trade order in weeks or months in advance. They can not trade their shares in the open market. They can only set the date that it's to be traded, not the price.
That's why when people see insiders sell at a low point in the stock and wonder why didn't they wait. Or maybe think the insider knows something and is dumping their shares now because the stock is going lower. But the reality is that the insider had no idea what price he's going to sell at because he had to place the sell order in months before and only during a certain window. Otherwise the SEC (and shareholders) can make accusation of insider trading.
The other point is that the tax owed on vested stocks and options is due once they become vested. Not when they are sold. And if the stock value (when vested) is going to be a big chunk of the yearly earnings, the IRS wants quarterly payments on the estimated tax, instead waiting till April to pay. So employees often put in a sell order in the quarter their stock become vested to pay the tax.
Because it can be construed as insider trading by the SEC. Therefore, companies like Apple have dates in which employees can not buy or sell AAPL stocks. There are also windows in which they can exercise their options or vested stocks. And these windows are often weeks before or after any announcements that may cause big movements in the stock. Not only that, these employees must put their trade order in weeks or months in advance. They can not trade their shares in the open market. They can only set the date that it's to be traded, not the price.
That's why when people see insiders sell at a low point in the stock and wonder why didn't they wait. Or maybe think the insider knows something and is dumping their shares now because the stock is going lower. But the reality is that the insider had no idea what price he's going to sell at because he had to place the sell order in months before and only during a certain window. Otherwise the SEC (and shareholders) can make accusation of insider trading.
The other point is that the tax owed on vested stocks and options is due once they become vested. Not when they are sold. And if the stock value (when vested) is going to be a big chunk of the yearly earnings, the IRS wants quarterly payments on the estimated tax, instead waiting till April to pay. So employees often put in a sell order in the quarter their stock become vested to pay the tax.
When? I could probably count the number of times that has happened but certainly can't the number of times it has fallen.
That depends on the time frame. If you're comparing the price of AAPL the day before a keynote and the day after, then more often than not, it will be lower the day after.(At least that's the way it seems to me also) That's because Apple rarely meets all the hype and rumors built up before the keynote. But the further out you go, the better the chances are that AAPL will be higher after the keynote than when you bought it. (Barring some unforeseen bad news in between.) Buy AAPL a few weeks before a keynote and chances are good that AAPL will still be higher than when you bought it after it drops the day after the keynote. For instance, if AAPL drops 2% after a keynote, it might have ran up 4% from when you bought it a few weeks ago. Most traders would sell right before a keynote to maximize gain. But for investors, we're use to it, it's just part of the AAPL roller coaster ride.
Good grief, this is nothing new. Also, Larry Page, Sergy Brin an Eric Schmdit sold a shitload of Google stock recently. Does that mean Google is doomed?
Comments
Quote:
Originally Posted by Corrections
You could research how much stock these guys have left, and how much is in the form of options that have not yet been exercised.
They didn't buy stock at $400. They got stock grants and/or options with a low strike price, meaning they could still profit tremendously by selling their stock when it was $380.
You can see what they have here --
http://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0000320193
And other Apple related reports here --
http://www.sec.gov/cgi-bin/browse-edgar?CIK=0000320193&action=getcompany
Originally Posted by xjyamaha
Why on Earth wouldn't they at least wait until the new iPhone and/or iPads release and the stock subsequently goes up for a period?
Because stock historically plummets after keynotes.
Quote:
Originally Posted by xjyamaha
Why on Earth wouldn't they at least wait until the new iPhone and/or iPads release and the stock subsequently goes up for a period?
Because it can be construed as insider trading by the SEC. Therefore, companies like Apple have dates in which employees can not buy or sell AAPL stocks. There are also windows in which they can exercise their options or vested stocks. And these windows are often weeks before or after any announcements that may cause big movements in the stock. Not only that, these employees must put their trade order in weeks or months in advance. They can not trade their shares in the open market. They can only set the date that it's to be traded, not the price.
That's why when people see insiders sell at a low point in the stock and wonder why didn't they wait. Or maybe think the insider knows something and is dumping their shares now because the stock is going lower. But the reality is that the insider had no idea what price he's going to sell at because he had to place the sell order in months before and only during a certain window. Otherwise the SEC (and shareholders) can make accusation of insider trading.
The other point is that the tax owed on vested stocks and options is due once they become vested. Not when they are sold. And if the stock value (when vested) is going to be a big chunk of the yearly earnings, the IRS wants quarterly payments on the estimated tax, instead waiting till April to pay. So employees often put in a sell order in the quarter their stock become vested to pay the tax.
Shows how much I know about stocks. Had no idea.
I know Apple stock has increased following releases.....
Originally Posted by xjyamaha
I know Apple stock has increased following releases.....
When? I could probably count the number of times that has happened but certainly can't the number of times it has fallen.
Quote:
Originally Posted by Tallest Skil
When? I could probably count the number of times that has happened but certainly can't the number of times it has fallen.
That depends on the time frame. If you're comparing the price of AAPL the day before a keynote and the day after, then more often than not, it will be lower the day after.(At least that's the way it seems to me also) That's because Apple rarely meets all the hype and rumors built up before the keynote. But the further out you go, the better the chances are that AAPL will be higher after the keynote than when you bought it. (Barring some unforeseen bad news in between.) Buy AAPL a few weeks before a keynote and chances are good that AAPL will still be higher than when you bought it after it drops the day after the keynote. For instance, if AAPL drops 2% after a keynote, it might have ran up 4% from when you bought it a few weeks ago. Most traders would sell right before a keynote to maximize gain. But for investors, we're use to it, it's just part of the AAPL roller coaster ride.
Quote:
Originally Posted by Rogifan
Good grief, this is nothing new. Also, Larry Page, Sergy Brin an Eric Schmdit sold a shitload of Google stock recently. Does that mean Google is doomed?
No...everyone else is.