Hope?!? short-swing profit rule
Following para is from above website.
Cohen made his last BBBY stock purchase on March 31st, 2022 and would lose all of his profit due to the short-swing profit rule.
Why would he invest 5 months of his time only to give up all of his profits to the company? Cohen can start selling some of his shares after 6 months, which would start around October 1st.
Why would he invest 5 months of his time only to give up all of his profits to the company? Cohen can start selling some of his shares after 6 months, which would start around October 1st.
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doctorpot1 : if the rule applies to him, then the profit he have to give back is maybe about 12m, but one thing for sure is he is walking out richer lets see what is this new financing deal BBBY will announce end of the month
doctorpot1 : oh by the way, just some thought after reading more.
The short swing trade rule applies to insider. he had 9.8% in shares (the rest is options not shares) so not sure if he is considered insider.
And if he is considered insider, those shares he bought in Jan and Feb will bypass this rule, so not all his profit will be taken.
T-EdOP : Thanks for sharing your thoughts.
doctorpot1 T-EdOP: someone made a calculation in this post from LuvKitty, 46m will go to BBBY, 22m to RC if the rule applies.
LuvKitty:
https://www.moomoo.com/community/feed/108849061167110?data_ticket=5b3500b278c1b7aa4a176e85285988a1&futusource=nnq_comment_stock-new