Tech insiders, IPOs, cashing out

Tech insiders dumped shares ahead of slide - FT.com: "....Among insiders to take money out of their companies before going public, early backers of King Digital Entertainment, maker of the Candy Crush Saga game, were paid $504m in dividends in the months before their company went public. The company’s shares ended last week 22 per cent below their March IPO price.

“It’s a yellow flag with regard to what’s really going on with the company,” said Mr Thomas. “It makes you worry what they are trying to sell to investors.”

Three executives at Box, a cloud storage company which has posted big losses and raised questions about whether the recent tech stock rally has made it too easy for companies to become public entities, sold $11m of shares during private financings, according to the company’s prospectus."


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