Monitoring Insider Transactions

Monitoring Insider Transactions is based on the theory, that no one buys stock in a company expecting the price to decline.

Directors have a greater understanding of their business, and its future growth prospects. They also have a vested interest in its success.

By monitoring insider buying and selling of shares in a company, traders can extend their scope of research beyond fundamental and technical analysis.

Insider Tips

  1. CEO and CFO know more about a company’s outlook than its directors.
  2. A lot of buying within a company is a good sign for its future prospects.
  3. All insiders in small to medium sized companies are up to date on financials.
Emphasize the importance of monitoring insider trading.

Monitoring Insider Transactions Conclusion

We hope you enjoyed reading Monitoring Insider Transactions. Click on the button below to learn a trading strategy, that is used prior to a companies ex-dividend date.