QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)

CEO Stock Purchases and Sales

CEOs of publicly-traded companies are required to report when they buy or sell shares of their company's stock to the Securities and Exchange Commission through Form 4 filings. This page uses SEC Form 4 data to identify which CEOs are buying shares of their comany's stock, indicating they are bullish enough about the company they work for to bet their own money on its future growth.

Learn more about trading stocks based on insider trading.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
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Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
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Analyst consensus is the average investment recommendation among Wall Street research analysts.
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Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyInsider NameBuy/SellShares Bought/SoldTotal TransactionShares Held After TransactionTransaction DateDetails
Ritchie Bros. Auctioneers Incorporated stock logo
RBA
Ritchie Bros. Auctioneers
Ann Fandozzi (CEO)Buy18,522$1,001,299.32 116,6075/18/2023
Agree Realty Co. stock logo
ADC
Agree Realty
Joey Agree (CEO)Buy5,000$326,750.00 524,2535/17/2023
NewtekOne, Inc. stock logo
NEWT
NewtekOne
Barry Sloane (CEO)Buy5,000$56,400.00 1,123,0485/17/2023
PennantPark Investment Co. stock logo
PNNT
PennantPark Investment
Arthur H Penn (CEO)Buy23,000$127,190.00 1,089,4235/17/2023
ECB Bancorp, Inc. stock logo
ECBK
ECB Bancorp
Richard J O'neil Jr (CEO)Buy10,000$110,500.00 26,1055/16/2023
Royalty Pharma plc stock logo
RPRX
Royalty Pharma
Pablo G Legorreta (CEO)Buy160,388$5,384,225.16 160,3885/16/2023
Ouster, Inc. stock logo
OUST
Ouster
Charles Angus Pacala (CEO)Buy86,300$501,403.00 562,3815/16/2023
Eagle Bancorp, Inc. stock logo
EGBN
Eagle Bancorp
Susan G Riel (CEO)Buy1,800$31,680.00 295,7115/16/2023
Brightcove Inc. stock logo
BCOV
Brightcove
Marc Debevoise (CEO)Buy14,945$51,111.90 1,075,9075/16/2023
Global Business Travel Group, Inc. stock logo
GBTG
Global Business Travel Group
Paul G Abbott (CEO)Buy8,147$50,918.75 2,537,2255/16/2023
Heartland Express, Inc. stock logo
HTLD
Heartland Express
Michael J Gerdin (CEO)Buy1,704$25,525.92 188,0395/16/2023
Akamai Technologies, Inc. stock logo
AKAM
Akamai Technologies
F Thomson Leighton (CEO)Buy293$25,001.69 85,3625/15/2023
Purple Innovation, Inc. stock logo
PRPL
Purple Innovation
Robert Demartini (CEO)Buy50,000$148,500.00 240,4745/15/2023
Global Self Storage, Inc. stock logo
SELF
Global Self Storage
Mark Campbell Winmill (CEO)Buy7,800$39,936.00 202,2025/15/2023
TrustCo Bank Corp NY stock logo
TRST
TrustCo Bank Corp NY
Robert J Mccormick (CEO)Buy4,096$113,868.80 260,4705/15/2023
Luminar Technologies, Inc. stock logo
LAZR
Luminar Technologies
Austin Russell (CEO)Buy1,300,000$7,579,000.00 2,330,0005/15/2023
National Vision Holdings, Inc. stock logo
EYE
National Vision
L Reade Fahs (CEO)Buy12,625$300,601.25 556,5505/15/2023
i3 Verticals, Inc. stock logo
IIIV
i3 Verticals
Gregory S Daily (CEO)Buy22,377$490,056.30 134,8005/15/2023
Porch Group, Inc. stock logo
PRCH
Porch Group
Matt Ehrlichman (CEO)Buy63,796$73,365.40 11,398,0745/15/2023
Rayonier Advanced Materials Inc. stock logo
RYAM
Rayonier Advanced Materials
Delyle W Bloomquist (CEO)Buy60,000$268,200.00 154,7695/15/2023
FreightCar America, Inc. stock logo
RAIL
FreightCar America
James R Meyer (CEO)Buy12,427$36,659.65 17,3275/15/2023
SoFi Technologies, Inc. stock logo
SOFI
SoFi Technologies
Anthony Noto (CEO)Buy108,000$504,360.00 6,488,5395/15/2023
Hydrofarm Holdings Group, Inc. stock logo
HYFM
Hydrofarm Holdings Group
William Douglas Toler (CEO)Buy35,000$38,150.00 1,784,3285/15/2023
Identiv, Inc. stock logo
INVE
Identiv
Steven Humphreys (CEO)Buy5,000$34,650.00 149,2155/15/2023
GoHealth, Inc. stock logo
GOCO
GoHealth
Vijay Kotte (CEO)Buy7,241$99,780.98 646,1305/15/2023
urban-gro, Inc. stock logo
UGRO
urban-gro
Bradley John Nattrass (CEO)Buy60,000$89,400.00 1,821,8055/15/2023
AFC Gamma, Inc. stock logo
AFCG
AFC Gamma
Leonard M Tannenbaum (CEO)Buy51,309$536,179.05 3,633,5275/15/2023
VAALCO Energy, Inc. stock logo
EGY
VAALCO Energy
George W.M. Maxwell (CEO)Buy10,000$37,000.00 143,8405/15/2023
Advantage Solutions Inc. stock logo
ADV
Advantage Solutions
David A Peacock (CEO)Buy80,000$126,400.00 1,778,1125/15/2023
Skillz Inc. stock logo
SKLZ
Skillz
Andrew Paradise (CEO)Buy157,344$86,539.20 10,456,6475/15/2023
PennantPark Investment Co. stock logo
PNNT
PennantPark Investment
Arthur H Penn (CEO)Buy25,000$134,250.00 1,045,4235/15/2023
American Assets Trust, Inc. stock logo
AAT
American Assets Trust
Ernest S Rady (CEO)Buy100,000$1,876,000.00 1,009,0215/12/2023
Babcock & Wilcox Enterprises, Inc. stock logo
BW
Babcock & Wilcox Enterprises
Kenneth M Young (CEO)Buy6,000$32,760.00 162,7135/12/2023
Porch Group, Inc. stock logo
PRCH
Porch Group
Matt Ehrlichman (CEO)Buy87,638$96,401.80 11,334,2785/12/2023
Skillz Inc. stock logo
SKLZ
Skillz
Andrew Paradise (CEO)Buy1,342,656$698,181.12 10,299,3035/12/2023
Health Catalyst, Inc. stock logo
HCAT
Health Catalyst
Daniel D Burton (CEO)Buy49,050$499,819.50 919,4155/12/2023
Cannae Holdings, Inc. stock logo
CNNE
Cannae
Richard N Massey (CEO)Buy50,000$900,500.00 377,4175/12/2023
FreightCar America, Inc. stock logo
RAIL
FreightCar America
James R Meyer (CEO)Buy15,251$42,397.78 622,7665/12/2023
Charge Enterprises, Inc. stock logo
CRGE
Charge Enterprises
Andrew Scott Fox (CEO)Buy175,000$182,000.00 30,775,4435/12/2023
P3 Health Partners Inc. stock logo
PIII
P3 Health Partners
Sherif Abdou (CEO)Buy108,225$284,631.75 108,2255/12/2023
Agree Realty Co. stock logo
ADC
Agree Realty
Joey Agree (CEO)Buy5,000$331,800.00 519,2535/12/2023
i3 Verticals, Inc. stock logo
IIIV
i3 Verticals
Gregory S Daily (CEO)Buy27,623$587,817.44 112,4235/12/2023
Topgolf Callaway Brands Corp. stock logo
MODG
Topgolf Callaway Brands
Oliver G Brewer III (CEO)Buy5,000$85,600.00 822,5565/12/2023
Fulton Financial Co. stock logo
FULT
Fulton Financial
Curtis J Myers (CEO)Buy15,000$147,150.00 157,0445/12/2023
Aviat Networks, Inc. stock logo
AVNW
Aviat Networks
Pete A Smith (CEO)Buy1,000$29,830.00 192,9185/12/2023
Tyson Foods, Inc. stock logo
TSN
Tyson Foods
Donnie King (CEO)Buy10,350$500,422.50 195,4785/11/2023
Forum Energy Technologies, Inc. stock logo
FET
Forum Energy Technologies
Neal Lux (CEO)Buy5,000$107,750.00 111,2135/11/2023
Prospect Capital Co. stock logo
PSEC
Prospect Capital
John F Barry (CEO)Buy100,000$628,000.00 72,599,5425/11/2023
Wintrust Financial Co. stock logo
WTFC
Wintrust Financial
Timothy Crane (CEO)Buy1,500$91,305.00 42,7075/11/2023
Telos Co. stock logo
TLS
Telos
John B Wood (CEO)Buy200,000$444,000.00 4,603,0155/11/2023
Citizens, Inc. stock logo
CIA
Citizens
Gerald Shields (CEO)Buy55,000$102,300.00 141,2865/11/2023
AFC Gamma, Inc. stock logo
AFCG
AFC Gamma
Leonard M Tannenbaum (CEO)Buy87,155$873,293.10 3,502,2185/11/2023
Trinity Capital Inc. stock logo
TRIN
Trinity Capital
Steve Louis Brown (CEO)Buy3,700$42,735.00 639,5765/11/2023
BRT Apartments Corp. stock logo
BRT
BRT Apartments
Jeffrey Gould (CEO)Buy3,984$67,449.12 3,417,8205/10/2023
American Assets Trust, Inc. stock logo
AAT
American Assets Trust
Ernest S Rady (CEO)Buy42,140$793,917.60 861,4815/10/2023
CommScope Holding Company, Inc. stock logo
COMM
CommScope
Charles L Treadway (CEO)Buy56,155$249,889.75 1,673,5495/10/2023
Ameris Bancorp stock logo
ABCB
Ameris Bancorp
H Palmer Proctor Jr (CEO)Buy10,000$292,500.00 288,7355/10/2023
Heartland Express, Inc. stock logo
HTLD
Heartland Express
Michael J Gerdin (CEO)Buy39,887$600,698.22 186,3355/10/2023
Identiv, Inc. stock logo
INVE
Identiv
Steven Humphreys (CEO)Buy10,000$67,600.00 139,2155/10/2023
Esperion Therapeutics, Inc. stock logo
ESPR
Esperion Therapeutics
Sheldon L Koenig (CEO)Buy20,000$25,200.00 312,8165/9/2023
Saul Centers, Inc. stock logo
BFS
Saul Centers
B Francis Saul II (CEO)Buy5,145$171,277.05 118,3615/9/2023
Heartland Financial USA, Inc. stock logo
HTLF
Heartland Financial USA
Bruce K Lee (CEO)Buy5,000$137,750.00 70,0395/9/2023
Sensus Healthcare, Inc. stock logo
SRTS
Sensus Healthcare
Joseph C Sardano (CEO)Buy17,075$51,054.25 1,147,3685/9/2023
Potbelly Co. stock logo
PBPB
Potbelly
Robert D Wright (CEO)Buy5,988$49,999.80 691,7465/9/2023
Ranpak Holdings Corp. stock logo
PACK
Ranpak
Omar Asali (CEO)Buy61,060$178,295.20 2,219,6205/9/2023
MidWestOne Financial Group, Inc. stock logo
MOFG
MidWestOne Financial Group
Charles N Reeves (CEO)Buy3,501$65,538.72 25,4955/9/2023
NerdWallet, Inc. stock logo
NRDS
NerdWallet
Tim Chao-Ming Chen (CEO)Buy30,838$258,422.44 685,4775/9/2023
B. Riley Financial, Inc. stock logo
RILY
B. Riley Financial
Bryant R Riley (CEO)Buy25,000$866,500.00 6,620,6315/8/2023
Heartland Express, Inc. stock logo
HTLD
Heartland Express
Michael J Gerdin (CEO)Buy22,165$337,794.60 144,1965/8/2023
American Assets Trust, Inc. stock logo
AAT
American Assets Trust
Ernest S Rady (CEO)Buy100,000$1,893,000.00 7,677,6285/8/2023
Glacier Bancorp, Inc. stock logo
GBCI
Glacier Bancorp
Randall M Chesler (CEO)Buy1,223$35,075.64 4,6855/8/2023
Thryv Holdings, Inc. stock logo
THRY
Thryv
Joe Walsh (CEO)Buy5,000$103,750.00 425,4185/8/2023
Arbor Realty Trust, Inc. stock logo
ABR
Arbor Realty Trust
Ivan Kaufman (CEO)Buy15,000$179,700.00 1,183,2775/8/2023
CB Financial Services, Inc. stock logo
CBFV
CB Financial Services
John Haines Montgomery (CEO)Buy1,500$27,975.00 21,5505/8/2023
Plains GP Holdings, L.P. stock logo
PAGP
Plains GP
Willie Cw Chiang (CEO)Buy75,000$993,750.00 256,7045/8/2023
DT Midstream, Inc. stock logo
DTM
DT Midstream
David Slater (CEO)Buy1,500$69,855.00 33,2735/8/2023
Huron Consulting Group Inc. stock logo
HURN
Huron Consulting Group
C. Mark Hussey (CEO)Buy2,000$144,960.00 110,2865/5/2023
Black Stone Minerals, L.P. stock logo
BSM
Black Stone Minerals
Thomas L Carter Jr (CEO)Buy31,800$493,854.00 2,652,7915/5/2023
Conduent Incorporated stock logo
CNDT
Conduent
Clifford Skelton (CEO)Buy34,418$100,156.38 3,447,4995/5/2023
Albemarle Co. stock logo
ALB
Albemarle
J Kent Masters (CEO)Buy5,470$993,570.80 51,4665/5/2023
American Assets Trust, Inc. stock logo
AAT
American Assets Trust
Ernest S Rady (CEO)Buy100,000$1,889,000.00 7,577,6285/5/2023
Akamai Technologies, Inc. stock logo
AKAM
Akamai Technologies
F Thomson Leighton (CEO)Buy323$25,042.19 85,0695/5/2023
iHeartMedia, Inc. stock logo
IHRT
iHeartMedia
Robert W Pittman (CEO)Buy88,028$253,520.64 1,971,3235/5/2023
Heartland Express, Inc. stock logo
HTLD
Heartland Express
Michael J Gerdin (CEO)Buy19,667$294,808.33 122,0315/5/2023
MidWestOne Financial Group, Inc. stock logo
MOFG
MidWestOne Financial Group
Charles N Reeves (CEO)Buy3,020$55,779.40 21,9945/4/2023
Safehold Inc. stock logo
SAFE
Safehold
Jay Sugarman (CEO)Buy1,200$32,232.00 1,720,3075/4/2023
Virtu Financial, Inc. stock logo
VIRT
Virtu Financial
Douglas A Cifu (CEO)Buy50,000$842,500.00 452,9075/4/2023
HarborOne Bancorp, Inc. stock logo
HONE
HarborOne Bancorp
Joseph F Casey (CEO)Buy10,000$82,500.00 313,8065/4/2023
Synovus Financial Corp. stock logo
SNV
Synovus Financial
Kevin S Blair (CEO)Buy4,600$120,980.00 86,9395/4/2023
SoFi Technologies, Inc. stock logo
SOFI
SoFi Technologies
Anthony Noto (CEO)Buy50,000$236,500.00 6,350,5395/4/2023
ADT Inc. stock logo
ADT
ADT
James David Devries (CEO)Buy50,000$248,000.00 2,131,7055/4/2023
East West Bancorp, Inc. stock logo
EWBC
East West Bancorp
Dominic Ng (CEO)Buy11,900$500,871.00 889,6095/4/2023
Old National Bancorp stock logo
ONB
Old National Bancorp
James C Ryan III (CEO)Buy8,200$100,204.00 625,0665/4/2023
Independent Bank Group, Inc. stock logo
IBTX
Independent Bank Group
David R Brooks (CEO)Buy5,000$151,800.00 545,9775/4/2023
Independent Bank Group, Inc. stock logo
IBTX
Independent Bank Group
David R Brooks (CEO)Buy5,000$151,800.00 545,9775/4/2023
SmartFinancial, Inc. stock logo
SMBK
SmartFinancial
William Young Jr. Carroll (CEO)Buy1,500$29,010.00 113,4725/4/2023
Matador Resources stock logo
MTDR
Matador Resources
Joseph Wm Foran (CEO)Buy2,000$84,800.00 175,4685/4/2023
ServisFirst Bancshares, Inc. stock logo
SFBS
ServisFirst Bancshares
Thomas A Broughton (CEO)Buy2,775$123,765.00 2,7755/4/2023
ArrowMark Financial Corp. stock logo
BANX
ArrowMark Financial
Sanjai Bhonsle (CEO)Buy2,000$28,560.00 10,2005/4/2023
Independent Bank Corp. stock logo
INDB
Independent Bank
Jeffrey J Tengel (CEO)Buy2,069$100,180.98 21,9485/4/2023

Key Points

  • Stakeholders who buy and sell stocks based on privileged information are often breaking the law and face stiff penalties.
  • However, insider trading is legal in some cases.
  • Learn how following legal inside trade transactions can help you make more informed investment decisions.
What is Insider Trading?

Insider trading has a sinister connotation, and for good reason. Stakeholders who buy and sell stocks based on privileged information are often breaking the law and face stiff penalties. However, in some cases, insider trading, sometimes called inside trading, is legal.

We’ll walk through the insider trading definition and go over certain cases where it’s perfectly acceptable for company insiders to buy and sell their stock. You'll also discover how following legal inside trade transactions can help you make more informed investment decisions.

What is Insider Trading?

What is insider trading, exactly? When someone buys and sells securities based on material, nonpublic information related to the security, it’s insider trading. 

Is insider trading illegal? When executives, analysts or large shareholders of the company do it, it’s illegal in most cases because it gives the insider an unfair advantage over the general public.

The Securities and Exchange Commission (SEC) regulates insider trading to prevent unfair advantages and to ensure fair and orderly markets. Insider trading is illegal if the trader has knowledge of the material and nonpublic information about the security. This means that the insider has knowledge of information that could affect the security’s price and the public does not.

Legal insider trading occurs when an insider has access to material nonpublic information but does not use it to gain an advantage in trading. Legal insider trading is regulated by the SEC. You can read our guide on what to know about insider trades for more information.

Understanding Insider Trading

Insider trading can have a significant impact on a company’s stock price. When nonpublic information is leaked and traded illegally, it can cause the stock price to move in a direction not reflective of the company’s true value. This can create an unfair playing field for other investors and can lead to losses for those who are unaware of insider trading. It’s a good idea to know about insider trading and to avoid investing in companies that may engage in it.

Meanwhile, legitimate insider trading can be an invaluable source of information. By tracking insider transactions, you can get a better sense of the direction the company will go and can get an indication of the company's future prospects. You can find companies with high amounts of insiders buying and selling their stocks with our insider trades screener.

Buying and selling shares of stock are important trading signals for investors because it reveals insiders’ confidence in the company’s future. When directors buy shares, it indicates that they are confident that the company is in good shape and that their investments in the company will pay off. When directors sell shares, it indicates that they are not as confident in the company’s prospects and that they may be looking to cash out before the stock price drops.

A chief financial officer (CFO) at the company often has the best estimation of a company's financial health. For this reason, it can be valuable to monitor CFO buys and sells.

Legal insider stock trading refers to the practice of trading stocks through an insider’s knowledge of a company’s performance. This type of trading is illegal in many countries, as it is seen as a form of insider trading. However, in some countries, such as the United States, it is permissible under certain circumstances.

Here’s an example of legal insider trading: A company executive uses knowledge of the company’s financial performance to purchase stocks in the company. This type of insider trading is legal if reported to the SEC and if the purchase was not made using material nonpublic information.

Illegal Insider Trading

Illegal insider stock trading is a type of securities fraud that occurs when a person uses nonpublic information to make trades in the stock market. This type of fraud involves a person who is in a position of trust and has access to confidential information about a company.

An example of illegal insider stock trading is when a person uses nonpublic information about a company to purchase or sell its stock. For example, if an executive of a company knows that the company will announce a major new product, they may purchase stock in the company before the announcement is made public. This is illegal because the executive uses information not available to the general public and trade on it to benefit themselves.

Another example of illegal insider stock trading is when a person uses information that they gained from another person in a position of trust. For example, if a lawyer is privy to information about a company that is not publically available, such as a potential merger or acquisition, they may use that information to buy or sell stock in the company. This is illegal because the lawyer used information gained through a position of trust and will trade on it for their own benefit.

Insider Trading vs. Insider Information

“Insider trading” and “insider information” describe buying and selling securities by people who have access to information not available to the general public. Insider trading is illegal and can result in criminal penalties, while insider information is legal and can be used to inform investment decisions.

Insider Trading

Insider trading is the buying or selling of securities by people who have access to non-public information about the company or security. This type of trading is illegal and can result in criminal prosecution. Examples of insider trading might look like this: 

A company executive purchases shares of his own company based on non-public financial information. In another example, a person who receives a tip from a friend in the company about a pending merger buys shares before the public knows about the news.

Insider Information

Insider information refers to information about a company or security that is not available to the public. It includes knowledge of a company’s upcoming earnings report, a pending acquisition or news of a new product launch. You can use this type of information to inform investment decisions, but it is not illegal to possess or use it. 

Insider information can be obtained from a variety of sources, including through company executives, financial advisors, industry analysts and news outlets. Remember that insider information is not always accurate and that it should not be used as the sole basis for investing decisions. 

In conclusion, insider trading and insider information are related but distinct concepts. Insider trading is illegal and can lead to criminal penalties, while insider information is legal and you can use it to inform investment decisions. It is important to remember that insider information should not be used as the sole basis for investment decisions and that it is not always accurate.

Where to Find Insider Trading Data 

The primary source for insider trading data is the U.S. Securities and Exchange Commission (SEC). The SEC requires companies to disclose certain transactions involving securities or derivatives of securities. Companies must file a Form 4 with the SEC whenever an insider makes a transaction, such as buying or selling shares or exercising options. These forms are available on the SEC’s website and can be accessed using the SEC’s EDGAR database

Investors can also access insider trading data directly from the companies themselves. Companies are required to file an 8-K form with the SEC whenever there is a material change in the company’s operations. These forms often contain information about insider trading transactions. Companies must disclose any stock options granted to executives and other insiders. This information is typically available in the company’s proxy statement, available on the SEC’s EDGAR website. 

How to Use Insider Trading Information Legally

While insider trading is generally illegal, there are ways to use insider trading information legally.

First, investors can use public information about insider trading activity to learn more about the company and its stock. For example, investors can watch for large purchases or sales of a company’s stock by its officers or directors. These transactions are reported to the SEC and can be found on the SEC’s EDGAR website. Investors can then use the information to research the company and make informed investment decisions.

Second, investors can create an “insider trading watch list,” where they track specific officers or directors and watch for any unusual trading activity. This can help investors stay up to date on potential major changes that may be taking place within the company.

Third, investors can use their knowledge of insider trading activity to identify potential investment opportunities. For example, if an officer or director of a company has made a large purchase of the company’s stock, it could be a sign that the company is doing well and is a good investment.

Finally, investors can use “insider trading alerts” to help them stay informed about any new insider trading activity. These alerts are available from various sources, including the SEC, and will notify you of any new insider trading activity.

Insider Trading Data Offers a Wealth of Information

While illegal insider trading is severely punished, legal insider traders can send signals to the market about how they feel about the future performance of their company. Now that you know the answer to “What does insider trading mean?” you know that investors who pay attention to these signals may make more informed investment decisions.

FAQs

Let’s take a look at some frequently asked questions about insider trading.

What are examples of insider trading?

Examples of insider trading include executives trading company securities with the knowledge of quarterly earnings or employees trading based on material nonpublic information they learned while working with the company.

Insider trading is illegal in most countries and can lead to fines, imprisonment or both, depending on the severity of the infraction. Legal insider trading can be done by stakeholders in the company under specific scenarios.

What is the meaning of insider trade?

An insider trade is when a company executive or employee buys or sells stock in the company they work for. This can be both legal and illegal in certain circumstances.

What are the two types of insider trading?

The two types of insider trading include legal insider trading and illegal insider trading. Legal insider trading occurs when corporate insiders, such as executives and directors, use information that is not available to the public to buy and sell stocks, in accordance with legal regulations.

Illegal insider trading occurs when corporate insiders use confidential information to buy or sell stocks in the company for their own personal gain.



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