Insiders in a company can be deemed as the Directors, Management, substantial shareholders or any Government entity in a government-linked company. When these groups of people are buying or selling the securities of their company, it signals many things.
When an insider is buying into a company, it can mean only one thing – that the person believes in the company and that it will deliver more value in the future, causing a rise in share price. When an insider sells a company, it can mean many things – he is taking some profit off the table, he needs the money for personal reasons or he knows something that the rest do not know. Insider selling doesn’t always equate the last point that the person is abandoning the ship. We need to employ critical thinking ...
Insiders in a company can be deemed as the Directors, Management, substantial shareholders or any Government entity in a government-linked company. When these groups of people are buying or selling the securities of their company, it signals many things.
When an insider is buying into a company, it can mean only one thing – that the person believes in the company and that it will deliver more value in the future, causing a rise in share price. When an insider sells a company, it can mean many things – he is taking some profit off the table, he needs the money for personal reasons or he knows something that the rest do not know. Insider selling doesn’t always equate the last point that the person is abandoning the ship. We need to employ critical thinking ...
