When you hear someone say insider trading, you may automatically think of an illegal act. It’s not illegal when performed the correct way. Companies can sell stock to their CEO, President and high ranking employees.
Companies can even sell their stock for less than the current market value.
When employees purchase stock, everything has to be documented in compliance with SEC standards.
That documentation then becomes public record.
Digging through the SEC website to look at all insider stocks purchased this year for an individual companies can be extremely time consuming. InsiderCow.com scours the SEC website for you and displays what you’re looking for within seconds.
When researching certain stock trades, it may be beneficial to know if the CEO recently purchased $1,000,000 in shares or more. When insiders are buying up a lot of company stock, they may believe the stock is completely under valued. They may also believe the stock will be worth much more in the future.
People get in trouble when they act on company news in a deceptive manner. For example if someone knows their company is about to go bankrupt and shorts the stock. I believe its worded something like this. A person cannot buy or sell based on company related information that has not been made available to the public.
Transparency is key!
Traders can use information found on InsiderCow.com as they are researching stocks. When company insiders purchase a large amount of stock at market value, that company may have brighter days ahead of it.
I’m adding the above mentioned website to my daily routine.
What website or source do you use when researching insider trading?