An Investor's Guide to Corporate Insider Trading Activity
by John Deysher
Are the corporate insiders buying or selling? ThatÂ’s a relevant question for every serious student of the stock market.
One of the most important tools of fundamental security analysis is knowing how the insiders feel about their own shares.
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Over time, insider purchases and sales have been fairly good predictors of future stock performance. Since insiders have access to crucial information not generally available to the public, it makes sense to monitor how they act toward their own shares. While not foolproof, studies have shown that insiders have fairly good results in buying and selling their own shares.
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