Close
Close

    Tracking the Smart Money: Screening for Insider Activity

    by Wayne A. Thorp

    One popular indicator used to gauge a stock's potential is insider buying activity.

    The logic is appealing—who else would better know the future prospects of the company and how this may impact future stock price movements? Insiders are privy to information regarding new products, competition, and operating environment, oftentimes long before the companies become large.

    On the other hand, studies have shown that insiders have been able to outperform the market on their buys, but not on their sells.

    ...To continue reading this article you must be registered with AAII.

    Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
    JOIN TODAY for just $29.
    Log in
    Already registered with AAII? Login to read the rest of this article.

    Register for FREE
    to read this article and receive access to future AAII.com articles.
      
    → Wayne A. Thorp