There’s a key distinction you’re overlooking. Buying actual shares is subject to insider-trading rules, and hence it can’t be done when an insider possesses material non-public information; on the other hand, the “virtual” buying of shares when an insider exercises options and holds the shares is not subject to insider-trading rules, and hence it may be done even when an insider does possess material non-public information.
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”
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