
Intel CEO's massive stock dump raises eyebrows - daegloe
http://money.cnn.com/2018/01/04/technology/business/brian-krzanich-intel-shares/index.html
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qubex
There’s a flaw in this thinking that conceals a subtle but inherent paradox
that should serve as a signpost. Him _not_ selling some shares regularly
according to the pre-arranged plan would function as a marker that there’s
trouble on the horizon and would scare investors into pre-emptying the drop in
value with stock sales. That’s the whole point of awarding shares and
announcing a sale plan ahead of time and sticking to it come what may: it
avoids leaking information into the market (as per the more stringent
interpretations of the Efficient Market Hypothesis). It’s also why the market
didn’t follow suit after his sale and take a nose-dive on the suspicion of
trouble: because since it was pre-announced and known it added no new
information. As the article notes: he’s an engineer and can do the math, and
quite surprisingly what he did was (also) the least harmful thing he could
inflict on his fellow stock-holders.

