As companies’ executive pay packages have swelled from stock-based compensation, some of those same companies have been buying back more shares.

But what if the CEO of a company is simultaneously selling a lot of shares?

Buybacks can be a good thing for investors if they are large enough to lower share counts and raise earnings per share. A decision by a chief executive officer to sell stock holdings may not mean he or she is losing faith in the stock. Still, it may make investors think twice, especially if the company is buyi…
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