WHAT HAPPENED: The founder of Green Mountain Coffee Roasters Inc., Robert Stiller, was ousted as chairman this week for a stock sale that was triggered by a margin call. The transaction happened during a blackout period when the company prohibits sale of its shares by insiders.
THE BACKGROUND: Investors are subject to margin calls when they put stock up as collateral to borrow cash. When share prices drop, the borrower may be required to cover the gap.
THE FOLLOWUP: On Wednesday a regulatory filing showed Stiller also sold his $50 million stake in Krispy Kreme Doughnuts Inc.