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Finance Dictionary and Glossary of Investment Terms
Net Insider Transactions
The number of shares purchased by corporate officers and directors minus sales by these folks for the latest month reported to the Securities and Exchange Commission. There is usually a three-month lag in reporting insider trades. Not to be confused with illegal insider trading, which involves profiting from nonpublic information, buying and selling by corporate insiders is often considered a good indication of a company''s fortunes, since who knows better than its executives what its prospects are? Insider buying is considered an especially good indicator; insiders sell for many reasons (to raise money for a child''s education or a new house, for instance, or to diversify), but they plow in their own money only in hopes of profit.