In big organizations, there are times when their CEOs and top level executives are selling and buying large amount of stock. This is because of the fact that they have huge amount of secret information and access to the regulations. They are aware of anything new coming to the market that can influence the price of the stock. They have plans to take their business to the extraordinary levels and they find these things as the opportunity to make more money. They have access to enough information on the basis of which they perform buying and selling in order to make more money in the stock market.
CEOs have always plans to buy and sell shares while purchasing and selling huge amount of stock. They let the other known for a year in advance that they want to sell their specific amount of shares in order to get some money in their bank accounts. They make most of their money from the getting stock in options and the amount salaries they make are the smallest part of their compensation packages. This is the reason why they are significantly encouraged to do a better job to increase the stock price which will benefit ion getting more compensation.
To prevent tag:-
CEOs perform all these things by setting plans in advance in order to avoid the tag from the regulators of having inside trading knowledge that is a crime. They execute these plans on a decided day to make purchasing and selling. All these business related things have nothing to do with the company business and do not have any effects on the employee.