Insider selling occurs frequently by company management as part of a planned distribution of their personal assets, and does not always indicate company woes ahead. CEOs and CFOs routinely and consistently may sell small amounts of their personal shares in the company as part of their own planned withdrawal from their stock position for a myriad of personal reasons.
Company Insiders - as defined by the Securities Exchange Act of 1934: "Any corporate director, officer, or shareholder with more than 10% of a registered security, who through influence of position obtains knowledge that may be used primarily for unfair personal gain to the detriment of others." This designation has been extended to include relatives, and others related to the insider in a position to capitalize on inside information.
