Anyone in finance know what this means?

[cookiesandwine]

The headline got my attention, but the rest is like a foreign language...

stafforddaily.com/xo-group-inc-discloses-insider-trading/35095/

[mischiefmama]

One of their employees sold their stock when it was high just last month, and they reported it as insider trading, meaning he knew something was going to happen that might affect the stock price.

The rest of it is also a foreign language to me. But that first part is very interesting!

[petrichor14]

Well insider trading is illegal (it's what sent Martha Stewart to prison) but I have no idea what it means that they reported it. I guess the implication is that person had knowledge that the stock was going to drop and unloaded a bunch of shares. Since it happened in December it doesn't seem to be related to what's going on now, but obviously the company is having issues and bad enough ones that someone high up was trying to take their money and run. Pretty crazy.

[dancinbeans27]

The fact that he unloaded the shares sends a major signal to all shareholders, or those watching the market. I sometimes play with a paper money account (trading with fake money) and I kind of want to short the stock to see what happens.

*Just in case your not a finance nerd like me: short selling- basically you sell the stock at the current price (even if you don't own it) then you buy it at a lower price and make the difference. I think this is going to keep going down.

In the article where it says it's bullish buying at the dips means they are trying to buy shares and drive it back up (bullish move drive the market up, bearish move down).

Not the best at explaining things, but hey I tried

[ashslatts24]

I asked my husband to explain this to me in lay people terms. I'll let you know if he remembers haha.

[Deleted]

We get notice about this at work every quarter. No trading at quarter end or year end. We are blacked out.

BTW Cookiesandwine I belong here.

[Deleted]

Jan 16, 2015 10:14:00 GMT -5 petrichor14 said:

Well insider trading is illegal (it's what sent Martha Stewart to prison) but I have no idea what it means that they reported it. I guess the implication is that person had knowledge that the stock was going to drop and unloaded a bunch of shares. Since it happened in December it doesn't seem to be related to what's going on now, but obviously the company is having issues and bad enough ones that someone high up was trying to take their money and run. Pretty crazy.

Interesting factoid:  Martha actually went to jail for perjury.  We discussed her case a few times in one of my white collar classes in law school, and it's interesting because she probably would not have been convicted of the insider trading charges, but because she lied under oath, she was convicted of that crime and sent to prison.  

Though, insider trading is still very bad and you shouldn't do it because most of the time, you will be caught and you will go to jail and you will not collect $200.

[kristhegirl]

I am not in finance, but based on someone else's post, this was just a notice of insider trading - it is the disclosure of one of the owners selling stock. Owners are allowed to sell stock, and disclosure is one of the steps that keeps it above-board.

This is not a big deal, was the consensus from people who know a hell of a lot more than me. It was in the "bump admin is taking questions" thread on TheDump and here on the parenting board.

[cookiesandwine]

Jan 16, 2015 12:35:55 GMT -5 kristhegirl said:

I am not in finance, but based on someone else's post, this was just a notice of insider trading - it is the disclosure of one of the owners selling stock. Owners are allowed to sell stock, and disclosure is one of the steps that keeps it above-board.

This is not a big deal, was the consensus from people who know a hell of a lot more than me. It was in the "bump admin is taking questions" thread on TheDump and here on the parenting board.

That's disappointing. I was hoping for scandal! 

[ashslatts24]

Yeah DH said it didn't sound too serious from what he was reading. He said at least the general consensus appears to be that the COO or the like sold off their stock, which had fallen the previous day, but it still went back up which is great for the company and ultimately while it may be insider trading, this doesn't appear to be anything more than a notice about it.

When he said that end part about it being good for the company I was like "NO. We want their stock to go down because they are douchebags." He was confused.

[cookiesandwine]

Jan 16, 2015 10:42:35 GMT -5 @sldober0521 said:

We get notice about this at work every quarter. No trading at quarter end or year end. We are blacked out.

BTW Cookiesandwine I belong here.

I didn't know the sn but I knew I recognized your DD's name from somewhere LOL Too funny!!!