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Insider TradingWhat You Should Know About Insider Trading: An insider is any officer, director or owner of 10% or more of a class of a company's securities. An insider must report any trade to the SEC by the month following the transaction. Every investor would love to have inside information. Trouble is, trading on it is illegal and can land you some serious hard time. Certain types of inside dope, however, are perfectly legit, and available to all who bother to look. We're talking about the buying and selling of company shares by so-called insiders, the firm's own executives and directors, who must report such activity in filings with the Securities and Exchange Commission shortly after such purchases and sales take place. There are various ways to interpret this data, and an entire industry, catering largely to institutional money managers, has grown up around parsing insider buys and sales. Insider selling typically is far more prevalent than buying, because for most executives, stock is a key component of ompensation. But heavier-than-usual selling by insiders can and should wave a red flag for outside investors.Those who track insider activity agree that buying is a more useful indicator than selling, because executives sell for myriad reasons, some of them quite personal like tuiton for children or simple a world cruise. Insider buying, on the other hand, suggests that the executive in question thinks the stock is undervalued. And more often than not, such buyers are right because insiders are closest to the company and probably understand it better than anyone else. It also pays often to watch what people do, not what they say. If the chief executive officer is talking up the company to a investor conference, even as he's selling shares hand over fist, something is amiss. Find out which stocks are heavily accumulated or dumped by insiders and get ahead of the "crowd". The tables below show you companies that filed with the SEC for the last six months (updated weekly). Free Trial
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Insider Sales
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