Should you buy when corporate insiders are buying, and sell when insiders are selling?  Do insider transactions mean anything at all for the future direction of stock prices?  What about the market as a whole?  Join me today as I cover the topic of insider trading.

 

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corporate boardroom

(CC image by ShellVacationsHospitality on Flickr)


Section 1: Insider Ownership

Founders or controlling shareholders

C-suite executives

Boards of directors

Executive compensation: performance-based incentives

Warrants vs. options

Restricted stock as a retention incentive

Employee stock purchase plans (ESPP)


Section 2: Common Types of Transactions

Exercise of stock options

Open market purchases

Open market sales

What’s legal and what isn’t


Section 3: How to Trade in Response to Insider Buying & Selling

A review of the research on insider trading

Figure out who the major insiders are, and how they typically transact

Routine vs. non-routine trades

Isolated vs. sequenced trades

Look for anomalies and follow suit (if everything else checks out with the company and its chart – always do technical analysis)

 

 


 

References

 

List of Insider Transactions (finviz.com)

SEC Info: Insider Trading Reports

Institutional Holdings: NASDAQ.com

Trends in Board of Director Compensation: Harvard Law


Intro music and mid-program music by audionautix.com


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