What is insider buying?
Insider buying is when a company's own executives or directors buy shares of their company. They have to report each trade to the SEC on a form called Form 4. It can be a sign that the people who know the business best expect the stock to do well.
Who counts as an insider
Company officers, board directors, and shareholders who own more than 10 percent of the company. They have the clearest view of how the business is doing.
Why it matters
When an insider spends their own money to buy stock, it often shows real confidence. Buying is usually a stronger signal than selling, since people sell for many reasons.
The catch
Not every buy is a signal. Look at the size of the buy, the person's role, and whether several insiders are buying at once. Patterns matter more than a single trade.
Frequently asked questions
Is insider buying a good signal?
It can be. Insiders know their business best, and buying with their own money often shows confidence. Larger buys and several insiders buying together are stronger signals.
Where is insider buying reported?
On SEC Form 4 filings. Stockslash shows the latest insider buys and links each one to the full stock page.