Q: When I look at what the insiders are doing on a company which is available on some sites, with the stocks they hold, I see:
Sell post exercise?
Exercise?
Sell;
Award?
Which of these should be concerning? Could you please explain the terminology of the ones above with a question mark.
Thank you.
Sell post exercise?
Exercise?
Sell;
Award?
Which of these should be concerning? Could you please explain the terminology of the ones above with a question mark.
Thank you.
5i Research Answer:
Sell post exercise is the exercise of stock options followed by an immediate sale of the stock received.
Exercise is converting stock options into actual shares.
Sell is sell. Selling stock from an existing position.
Award: is the award of a stock option or stock directly to an insider.
Selling is the most concerning as the insider owned stock directly and now decided to sell some. This is different than just flipping an option into cash (which is essentially what sell/exercise is).