Insiders Transactions
This page gives you a closer look at the trades being made by company executives, which can sometimes point to shifts in a stock's potential. Keeping an eye on these transactions can help you understand market sentiment. Our 52-Week Highs and Lows offer a complementary view, highlighting stocks near their highest or lowest points in the past year, which may align with insider buying or selling activity.
Frequency Asked Questions
Is it illegal to buy stock in your own company?
No, it's not inherently illegal, but insiders must adhere to strict rules and disclosure requirements to avoid illegal insider trading.
What qualifies as insider trading?
Trading a public company's stock or other securities based on non-public, material information.
What is front running manipulation?
Front-running is trading ahead of a large, pre-announced transaction that is likely to move the market. It's a form of market manipulation.
Has anyone gone to prison for insider trading?
Yes, numerous individuals have been prosecuted and imprisoned for insider trading.
Which scenario gives a good example of insider trading?
A company CEO buying a large amount of their company's stock after learning about a major, unannounced positive earnings report.
What are the fines for insider trading?
Fines can be substantial, including monetary penalties up to three times the profit gained or loss avoided, and even criminal charges with potential jail time.
What is the difference between front running and insider trading?
Insider trading involves trading on non-public, material information. Front-running involves trading ahead of a known, market-moving transaction.
What famous person was charged with insider trading?
Raj Rajaratnam (founder of the Galleon Group) is a famous example.
What is an insider trading report?
Insiders are required to report their transactions to regulatory bodies like the SEC in the U.S. These reports are publicly available.
What percentage of stocks are insider owned?
The percentage varies greatly from company to company. You can find this information in a company's filings (e.g., SEC filings).
Is insider ownership good for a stock?
Generally, high insider ownership can be seen as a positive sign, aligning management's interests with shareholders. However, it's not the only factor to consider.
How do people get caught for insider trading?
Through surveillance by regulatory bodies, tips from whistleblowers, and analysis of trading patterns.