Say What?

| March 07, 2019
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Why am I not surprised!

Insiders unload significant amounts of stock upon announcing a buyback and benefit from short-term price pop at the expense of long-term shareholders.

SEC research found that many corporate executives sell significant amounts of their own shares after their companies announce stock buybacks, Yahoo Finance reports.

Furthermore, the share prices of those companies underperform the broader market in the long run.

SEC Commissioner Robert Jackson included results of the research in a letter to Sen. Chris Van Hollen (D-MD), who had questioned SEC Chair Jay Clayton about the pattern of executives selling shares after announcing buybacks.

Van Hollen calls the findings “very significant and very troubling,” and suggests one remedy might be to prohibit executive from selling their shares in a “specific period of time around a stock buyback.”


Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O


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