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MadMunky5B5 t1_jad9zom wrote

  1. Most high level execs receive their bonus in the form of stock option. A stock option is the option to purchase a stock at a price that is set(usually below current market at the time the option is awarded). They can exercise these options at any time because the price is set before they receive them and it is part of their compensation.
  2. When an exec(or some other person who has valuable insider information) wants to transact(buy or sell) on the stock they have insider info for they are generally required to announce their intention and the price at which they are selling several weeks in advance. There are also "black out dates" where they are not allowed to buy or sell, such as around earnings announcements(since earnings are a regular event that often has a big impact of stock price).
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