Newmont Insiders Sell Millions Ahead Of Entrance Into Dow Jones Sustainability World Index
On September 13, 2012, Newmont Mining Corp. (NYSE:NEM) announced it had been named to the Dow Jones Sustainability World Index (DJSI World), marking the company's sixth consecutive year of entering the index.
While this sent shares of the company higher, it came amid a flurry of insider trading, in which company officials sold millions of dollars' worth of shares despite the positive news.
The company was named to the sustainability index, which is also home to 300 other global companies that have earned a reputation of being economically, environmentally and socially sustainable.
"Newmont is pleased to once again be recognized by the DJSI as one of the world's leaders in sustainability," said Richard O'Brien, Newmont's Chief Executive Officer. "This recognition acknowledges the hard work of our employees and contractors around the world who consistently strive to demonstrate leadership in safety, environmental stewardship and social responsibility."
However, in the three months leading up to the announcement, company insiders sold $1.29 million in shares.
Why do you think these shares were sold despite the company's positive report?
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