CEOs Hedging Their Company Stock Against Losses

[txlaw]

Interesting article on how some CEOs decide to hedge their company stock against losses rather than sell such stock.

 

http://www.businessweek.com/magazine/content/10_10/b4169044647894.htm

[ubuy2wron]

During the hight of the internet boom you could not borrow shares to short because insiders had tied up all the shares available to borrow to put on collars etc for their shares. It made me sick to see insiders sell all of their shares effectively yet not to have to report any of the transactions. Another reason to outlaw derivatives IMO.