why would insiders sell before an aquisition


I'm monitoring a stock that recently announced that they were acquired for a specific price. The deal hasn't closed yet, but I just noticed that several insiders sold a sizeable amount of stock at about $1 less than the acquision price. I'm trying to understand why this would happen. If they waited, they'd get $1 more per share at the close of the deal. Are they hedging just in case the deal doesn't go thru and the stock falls? Since they are insiders, does it possibly mean that they know that the deal isn't going to go thru and they are trying to sell while the stock is high? If so, wouldn't that be pretty blatant insider trading? I'm just trying to understand what are the reasons why someone would short themselves.

submitted by /u/tjpoe
[link] [comments]

The Stock Market News

Financial news aggregator for traders and investors that proposes to you the latest financial news, business top stories, today's headlines, trading analysis, opinions and forecasts on stock market, currencies (Forex), cryptocurrency, commodities futures, ETFs & funds, bonds & rates and much more. We do not create or publish our own content or copy full articles from other sites. The Stock Market News works with public RSS feeds of best business, finance and economic news websites, personal blogs and provides automatically generated list of financial news links directly referring to its sources.