NEW YORK ( TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.Among his posts this past week, Kass explained how you should interpret insider selling, why he's shorting Goldman Sachs (again) and why Facebook has "sell" written all over it. Please click here for information about subscribing to RealMoney Pro.
When Insider Selling Matters
Originally published on Thursday, Feb. 28 at 12:25 p.m. EST.
- If an exec cashes in five years before his option expires, that's a red flag.
- Specify the amount, price (which may include a limit price) and specific dates of purchases or sales, or
- Include a formula or similar method for determining amount, price and date, or
- Give the broker the exclusive right to determine whether, how and when to make purchases and sales, as long as the broker does so without being aware of material, nonpublic information at the time the trades are made.