Corporate insiders should, in theory, be able to better time share purchases and sales in their companies.
On insiders' buying is there an emotional angle in that employees may "feel" it is the right thing to do -- back you own horse, lead from the front etc -- I get the selling part.
There definitely is a signalling part where insiders tend to buy more when the share price is down to inspire confidence in other investors.
Insiders sell for all types of reasons but usually only buy because of one, they think the stock is going up
That is true but that implies that their sales don’t have any information value on average. Yet, it seems there is some information in insider sales.
Agreed- appreciate the insight as always.
On insiders' buying is there an emotional angle in that employees may "feel" it is the right thing to do -- back you own horse, lead from the front etc -- I get the selling part.
There definitely is a signalling part where insiders tend to buy more when the share price is down to inspire confidence in other investors.
Insiders sell for all types of reasons but usually only buy because of one, they think the stock is going up
That is true but that implies that their sales don’t have any information value on average. Yet, it seems there is some information in insider sales.
Agreed- appreciate the insight as always.