A few months ago I purchased stock in a company that's now going through a rough time. In my Fidelity account, I keep seeing notifications that the CEO has been selling stocks in his company.
This got me wondering: if the CEO hypothetically started off with one million shares in his company, does that mean he paid full market price for them when his company went public? Or do insiders like CEOs get to purchase stocks in their own companies at a reduced rate, or can they allocate a certain number of shares as a sort of free bonus to themselves?
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