Long and short wars boost stock prices! Goss Electronics executives took the opportunity to cash out 45 million US dollars

According to the news on February 5, after the U.S. stock market’s long-short-term war pushed its stock price up sharply last week, the founder family of headphone manufacturer Koss Corp (Koss Corp) and some company executives took the opportunity to cash out about 45 million US dollars.

According to the company’s filing with the US Securities and Exchange Commission (SEC) on Wednesday (February 3), its CEO Michael Goss cashed out about $12.9 million by selling his shares this week. His brother, John Goss, the company’s vice president of sales, cashed out 16.64 million US dollars. His son, Michael Goss, Jr., vice president of marketing and product, cashed out $3.66 million.

Goss Electronics was founded in 1958. The Goss family owns approximately 75% of the Milwaukee-based headset manufacturer. During the short-squeeze wave last week, his family members sold shares worth $31 million.

The documents show that they sell at a price of between $19 and $60 per share. Goss Electronics’ stock has been fluctuating below US$4 before, but after being shorted by retail investors’ attention, the company’s stock price soared to US$64 last Friday. The 31 million U.S. dollars even exceeded the company’s 26 million U.S. dollar market value before the short-short, and the current Goss Electronics market value is 150 million U.S. dollars.

At the same time, Goss Electronics’ directors and other executives sold a total of $13 million in stock.

Goss became the favourite of short-term traders looking for “short selling” opportunities outside of the game station last week. The short-selling rate of the company’s stock before the rise was more than 35%, making it one of many stocks that were sold short. By buying these stocks, traders force short sellers to lose money to cover their positions and give up trading.

However, the massive selling by insiders and the wealth they created shows that in many cases, it is insiders and major shareholders that profit from transactions, not small retail investors. Normally, when an investor is short stocks, he or she intervenes with the belief that the stock price will fall. Then, investors can buy stocks to make a profit.

The company’s stock price opened at only $3.65 last Monday and ended at $64 last Friday, a surge of more than 16 times. But the stock continued to fall this week, plummeting 26.53% on Thursday, closing at $18.80.

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