The boss of the world’s largest movie theater chain added that that during his almost six years with AMC he had never sold any of his stock, except for the 500,000 shares he gifted to his adult children.
Adam Aron, the chief executive of AMC Entertainment Holdings Inc., on Tuesday filed to sell about $53 million worth of his shares in the company.A separate filing on Wednesday showed he sold half of those shares Tuesday at an average price of $40.53.
Insider Trading That Is Illegal
The CEO of a company sells a stock after discovering that the company will be losing a government contract next month.
When did Adam Aron take over AMC?
Aron was named CEO of AMC movie theaters in late 2015.
Can CEOS sell their stock whenever they want?
executive officers generally start from a position that they cannot sell company stock, at least not easily. consider that to do so: First, they must be in compliance with their company’s own share ownership guidelines or retention and holding requirements.
Is inside trading illegal?
Insider trading is an unfair and illegal practice in the stock market, wherein other investors are at a great disadvantage due to the lack of important insider non-public information about a company.
Can board members sell stock?
Yes. In addition to the prohibition against insider trading, company stock held by an “affiliate” (e.g. any director or executive officer) of a public company generally must be sold under SEC Rule 144 and Section 16.How Executives And Directors Can Avoid SEC Troubles Before Trading Their Company Stock.
Mr. Aron hired J.P.Morgan Securities LLC to handle the sale of 1.25 million shares, according to a securities filing. A separate filing on Wednesday showed he sold half of those shares Tuesday at an average price of $40.53. He will transact all the sales under a pre-arranged trading plan he adopted in August.
What is Adam Aron salary?
What is the salary of Adam Aron? As the President, Chief Executive Officer, and Director of AMC Entertainment Inc, the total compensation of Adam Aron at AMC Entertainment Inc is $9,671,800. There are no executives at AMC Entertainment Inc getting paid more.
Is it illegal to tell someone to buy a stock?
1 Answer. Yes, this is prohibited by the Securities Exchange Act of 1934, Section 9(a)(2).
What is the penalty for insider trading?
Criminal Penalties. The maximum prison sentence for an insider trading violation is now 20 years. The maximum criminal fine for individuals is now $5,000,000, and the maximum fine for non-natural persons (such as an entity whose securities are publicly traded) is now $25,000,000. Civil Sanctions.
What’s wrong with insider trading?
The main argument against insider trading is that it is unfair and discourages ordinary people from participating in markets, making it more difficult for companies to raise capital. Insider trading based on material nonpublic information is illegal.
Can you go to jail for trading stocks?
Incarceration. A conviction for securities fraud can also result in a prison sentence. Any conviction for a federal securities fraud crime can result in a 5-year federal prison sentence per offense.
What is a Upsi?
As per this definition, UPSI means any information, relating to a company or its securities, directly or indirectly, that is not generally available which upon becoming generally available, is likely to materially affect the price of the securities.
What are insiders buying?
When insiders purchase shares, it indicates their confidence in the company’s prospects or that they view the stock as a bargain. Insider purchases should not be taken as the only indicator for making an investment or trading decision.At best, it can lend conviction to a buying decision.
Who can be guilty of insider trading?
Insider trading is the use of nonpublic information in making a securities transaction or the distribution of such information for the purpose of influencing a transaction. Anyone who gives or receives confidential information that leads to a profitable stock trade could be found guilty of insider trading.
Why do board members sell their stock?
Nick Clay, a portfolio manager with Newton Investment Management, said company executives often have a legitimate reason to sell stock. They may need to pay taxes or want to diversify their portfolio, for example. Many prominent insiders even have preset plans to periodically sell shares.
Is insider trading a felony?
Insider trading is a white-collar crime that is often prosecuted as a felony. It’s no wonder that the punishment for illegal insider trading often includes jail time and steep fines.
Through no fault of its own, AMC was devastated during the coronavirus pandemic when it had to shut its doors to the viewing public. Therefore, it was no surprise to see CEO Adam Aron announce he would begin selling some of his AMC stock later this year. AMC stock is up over 1,500% in 2021.
In an SEC form 4 filing, Aron revealed he paid an average price of $40.529 for the 625,000 shares sold and that he retained a direct beneficial ownership of 408,497 shares.
What companies does Adam Aron own?
Chairman / CEO
The former CEO of Norwegian Cruise Lines and current co-owner of NBA’s Philadelphia 76ers, Aron took over the exhibitor in January 2016 and embarked on a $3 billion spending spree, acquiring Georgia-based Carmike Cinemas and Odeon & UCI Cinemas and Nordic Cinema Group in Europe.
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