RE:RE:RE:RE:RE:Buyout incoming, read the news!
read insider trading during takeover published by Harvard Lawschool. There is a key reason amidst its academic explanation through its studies. The reason that insiders sell by the looks of it is to keep the price down so that logically when the price being negotiated will not likely exceed the buyout which would not be good for those who paid the peak. I am only gathering that from what I read it is a 2012 article. Various moves are done at various points I time. Another reason is that the company doesn't want to get the SEC angry if there are higher than normal trades and odd patterns that will get them in trouble but it looks to be a common thing. Insiders may well buy in 6 months to a year in advance again not trying to cause high volumes tip the SEC and keep the negotiated price I am gathering in check where the stock price doesn't go nuts. What if the takeover price is $2 and the shares trade up to $3 and people think the stock will keep moving up and when the announcement those who bought at peak lost massive money?