S&P 500   4,320.06
DOW   33,963.84
QQQ   357.91
High-speed rail was touted as a game-changer in Britain. Costs are making the government think twice
Watch SHOCKING Footage of AI Facility with Ties to Elon Musk (Ad)
Minnesota's would-be head of cannabis regulation quits amid reports she sold illegal products
After climate summit, California Gov. Gavin Newsom faces key decisions to reduce emissions back home
Options Trading Plan–Perfect For Beginners (Ad)
The threat of wildfires is rising. So are new artificial intelligence solutions to fight them
Canadian autoworkers ratify new labor agreement with Ford
WARNING: Mandatory U.S. Dollar Recall is Weeks Away (Ad)
Giorgio Armani closes Milan Fashion Week with good vibes and familiar guests in the front row
A coal mine fire in southern China's Guizhou province kills 16 people
S&P 500   4,320.06
DOW   33,963.84
QQQ   357.91
High-speed rail was touted as a game-changer in Britain. Costs are making the government think twice
Watch SHOCKING Footage of AI Facility with Ties to Elon Musk (Ad)
Minnesota's would-be head of cannabis regulation quits amid reports she sold illegal products
After climate summit, California Gov. Gavin Newsom faces key decisions to reduce emissions back home
Options Trading Plan–Perfect For Beginners (Ad)
The threat of wildfires is rising. So are new artificial intelligence solutions to fight them
Canadian autoworkers ratify new labor agreement with Ford
WARNING: Mandatory U.S. Dollar Recall is Weeks Away (Ad)
Giorgio Armani closes Milan Fashion Week with good vibes and familiar guests in the front row
A coal mine fire in southern China's Guizhou province kills 16 people
S&P 500   4,320.06
DOW   33,963.84
QQQ   357.91
High-speed rail was touted as a game-changer in Britain. Costs are making the government think twice
Watch SHOCKING Footage of AI Facility with Ties to Elon Musk (Ad)
Minnesota's would-be head of cannabis regulation quits amid reports she sold illegal products
After climate summit, California Gov. Gavin Newsom faces key decisions to reduce emissions back home
Options Trading Plan–Perfect For Beginners (Ad)
The threat of wildfires is rising. So are new artificial intelligence solutions to fight them
Canadian autoworkers ratify new labor agreement with Ford
WARNING: Mandatory U.S. Dollar Recall is Weeks Away (Ad)
Giorgio Armani closes Milan Fashion Week with good vibes and familiar guests in the front row
A coal mine fire in southern China's Guizhou province kills 16 people
S&P 500   4,320.06
DOW   33,963.84
QQQ   357.91
High-speed rail was touted as a game-changer in Britain. Costs are making the government think twice
Watch SHOCKING Footage of AI Facility with Ties to Elon Musk (Ad)
Minnesota's would-be head of cannabis regulation quits amid reports she sold illegal products
After climate summit, California Gov. Gavin Newsom faces key decisions to reduce emissions back home
Options Trading Plan–Perfect For Beginners (Ad)
The threat of wildfires is rising. So are new artificial intelligence solutions to fight them
Canadian autoworkers ratify new labor agreement with Ford
WARNING: Mandatory U.S. Dollar Recall is Weeks Away (Ad)
Giorgio Armani closes Milan Fashion Week with good vibes and familiar guests in the front row
A coal mine fire in southern China's Guizhou province kills 16 people

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 company'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 dividend strength, earnings, valuation, analysts forecasts, and more.
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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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Media SentimentUpgrade to All Access to use the All Sentiments Filter
Analyst consensus is the average investment recommendation among Wall Street research analysts.
Available with a MarketBeat All Access Subscription
Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyInsider NameBuy/SellShares Bought/SoldTotal TransactionShares Held After TransactionTransaction DateDetails
Porch Group, Inc. stock logo
PRCH
Porch Group
Matt Ehrlichman (CEO)Buy114,159$87,902.43 13,532,2909/22/2023
Eos Energy Enterprises, Inc. stock logo
EOSE
Eos Energy Enterprises
Joe Mastrangelo (CEO)Buy36,500$74,825.00 590,7999/21/2023
Dominari Holdings Inc. stock logo
DOMH
Dominari
Anthony Hayes (CEO)Buy15,000$38,850.00 17,0009/20/2023
Saul Centers, Inc. stock logo
BFS
Saul Centers
B Francis Saul II (CEO)Buy7,903$293,043.24 133,0919/20/2023
Porch Group, Inc. stock logo
PRCH
Porch Group
Matt Ehrlichman (CEO)Buy40,704$32,970.24 13,330,6599/20/2023
DoubleVerify Holdings, Inc. stock logo
DV
DoubleVerify
Mark Zagorski (CEO)Buy1,765$50,055.40 357,1129/19/2023
HighPeak Energy, Inc. stock logo
HPK
HighPeak Energy
Jack Hightower (CEO)Buy224,001$3,716,176.59 4,082,3929/19/2023
Greenwich LifeSciences, Inc. stock logo
GLSI
Greenwich LifeSciences
Snehal Patel (CEO)Buy4,000$35,800.00 5,296,1779/19/2023
Greenwich LifeSciences, Inc. stock logo
GLSI
Greenwich LifeSciences
Snehal Patel (CEO)Buy4,000$35,800.00 5,296,1779/19/2023
First Citizens BancShares, Inc. stock logo
FCNCA
First Citizens BancShares
Frank B Holding Jr (CEO)Buy110$126,500.00 97,4429/19/2023
Planet Labs PBC stock logo
PL
Planet Labs PBC
William Spencer Marshall (CEO)Buy100,000$270,000.00 1,405,3569/19/2023
Neumora Therapeutics, Inc. stock logo
NMRA
Neumora Therapeutics
Henry O Gosebruch (CEO)Buy15,000$189,300.00 15,0009/19/2023
Asana, Inc. stock logo
ASAN
Asana
Dustin A Moskovitz (CEO)Buy507,500$9,322,775.00 43,425,1499/18/2023
Domo, Inc. stock logo
DOMO
Domo
Joshua G James (CEO)Buy25,400$246,634.00 39,3009/18/2023
Postal Realty Trust, Inc. stock logo
PSTL
Postal Realty Trust
Andrew Spodek (CEO)Buy10,000$140,000.00 197,5189/18/2023
The Hain Celestial Group, Inc. stock logo
HAIN
The Hain Celestial Group
Wendy P Davidson (CEO)Buy10,000$100,000.00 16,6369/15/2023
Porch Group, Inc. stock logo
PRCH
Porch Group
Matt Ehrlichman (CEO)Buy37,414$32,176.04 13,240,9969/15/2023
ModivCare Inc. stock logo
MODV
ModivCare
L Heath Sampson (CEO)Buy3,500$120,995.00 27,9669/15/2023
Domo, Inc. stock logo
DOMO
Domo
Joshua G James (CEO)Buy13,900$137,610.00 13,9009/15/2023
CF Bankshares Inc. stock logo
CFBK
CF Bankshares
Timothy T O'dell (CEO)Buy3,000$51,240.00 280,6289/15/2023
Hurco Companies, Inc. stock logo
HURC
Hurco Companies
Gregory S Volovic (CEO)Buy2,357$50,204.10 76,6519/15/2023
Granite Ridge Resources, Inc. stock logo
GRNT
Granite Ridge Resources
Luke C Brandenberg (CEO)Buy10,000$50,000.00 49,8209/15/2023
The Honest Company, Inc. stock logo
HNST
Honest
Carla Vernon (CEO)Buy50,000$60,500.00 1,945,2389/15/2023
AudioEye, Inc. stock logo
AEYE
AudioEye
David Moradi (CEO)Buy29,947$167,403.73 2,898,3339/15/2023
Energy Vault Holdings, Inc. stock logo
NRGV
Energy Vault
Robert Piconi (CEO)Buy49,915$148,746.70 14,187,3959/15/2023
Applied Optoelectronics, Inc. stock logo
AAOI
Applied Optoelectronics
Chih-Hsiang (Thompson) Lin (CEO)Buy15,000$146,850.00 1,252,4719/14/2023
Sensus Healthcare, Inc. stock logo
SRTS
Sensus Healthcare
Joseph C Sardano (CEO)Buy10,000$28,800.00 1,175,2939/14/2023
loanDepot, Inc. stock logo
LDI
loanDepot
Frank Martell (CEO)Buy15,000$28,950.00 383,4029/14/2023
NewtekOne, Inc. stock logo
NEWT
NewtekOne
Barry Sloane (CEO)Buy2,000$32,460.00 1,130,0489/13/2023
Porch Group, Inc. stock logo
PRCH
Porch Group
Matt Ehrlichman (CEO)Buy70,779$61,577.73 13,168,8659/13/2023
Virtu Financial, Inc. stock logo
VIRT
Virtu Financial
Douglas A Cifu (CEO)Buy50,000$853,000.00 442,7559/13/2023
LuxUrban Hotels Inc. stock logo
LUXH
LuxUrban Hotels
Brian Ferdinand (CEO)Buy10,000$36,800.00 200,8259/13/2023
Trinseo PLC stock logo
TSE
Trinseo
Frank A Bozich (CEO)Buy8,000$64,560.00 192,6539/12/2023
Pioneer Power Solutions, Inc. stock logo
PPSI
Pioneer Power Solutions
Nathan Mazurek (CEO)Buy10,000$60,900.00 2,010,8599/12/2023
loanDepot, Inc. stock logo
LDI
loanDepot
Frank Martell (CEO)Buy20,000$38,600.00 353,4029/12/2023
NerdWallet, Inc. stock logo
NRDS
NerdWallet
Tim Chao-Ming Chen (CEO)Buy23,938$201,079.20 688,5239/11/2023
Century Casinos, Inc. stock logo
CNTY
Century Casinos
Peter Hoetzinger (CEO)Buy7,500$43,200.00 143,5009/11/2023
Prospect Capital Co. stock logo
PSEC
Prospect Capital
John F Barry (CEO)Buy16,520$98,954.80 72,752,7289/11/2023
Asana, Inc. stock logo
ASAN
Asana
Dustin A Moskovitz (CEO)Buy80,000$1,631,200.00 42,917,6499/11/2023
Postal Realty Trust, Inc. stock logo
PSTL
Postal Realty Trust
Andrew Spodek (CEO)Buy2,718$38,486.88 187,5189/11/2023
Vitesse Energy, Inc. stock logo
VTS
Vitesse Energy
Robert W Gerrity (CEO)Buy5,000$117,800.00 169,0999/11/2023
Porch Group, Inc. stock logo
PRCH
Porch Group
Matt Ehrlichman (CEO)Buy163,158$140,315.88 12,953,2809/11/2023
The Eastern Company stock logo
EML
Eastern
Mark Anthony Hernandez (CEO)Buy1,773$33,084.18 12,0359/11/2023
QCR Holdings, Inc. stock logo
QCRH
QCR
Larry J Helling (CEO)Buy1,000$50,000.00 30,6439/8/2023
Asana, Inc. stock logo
ASAN
Asana
Dustin A Moskovitz (CEO)Buy474,847$9,511,185.41 42,837,6499/8/2023
Peoples Bancorp Inc. stock logo
PEBO
Peoples Bancorp
Charles W Sulerzyski (CEO)Buy4,000$101,240.00 89,8299/8/2023
Sealed Air Co. stock logo
SEE
Sealed Air
Edward L Doheny II (CEO)Buy10,000$338,500.00 658,3609/8/2023
Foot Locker, Inc. stock logo
FL
Foot Locker
Mary N Dillon (CEO)Buy5,510$100,116.70 27,6499/8/2023
HF Foods Group Inc. stock logo
HFFG
HF Foods Group
Xiao Mou Zhang (CEO)Buy14,952$65,489.76 130,0009/8/2023
Altisource Portfolio Solutions S.A. stock logo
ASPS
Altisource Portfolio Solutions
William B Shepro (CEO)Buy41,667$150,001.20 686,8009/8/2023
Five Below, Inc. stock logo
FIVE
Five Below
Joel D Anderson (CEO)Buy3,100$500,650.00 99,6569/8/2023
CorMedix Inc. stock logo
CRMD
CorMedix
Joseph Todisco (CEO)Buy10,000$37,100.00 219,7269/8/2023
Postal Realty Trust, Inc. stock logo
PSTL
Postal Realty Trust
Andrew Spodek (CEO)Buy5,718$81,481.50 184,8009/8/2023
NewtekOne, Inc. stock logo
NEWT
NewtekOne
Barry Sloane (CEO)Buy2,000$34,540.00 1,128,0489/7/2023
Porch Group, Inc. stock logo
PRCH
Porch Group
Matt Ehrlichman (CEO)Buy425,000$327,250.00 12,621,3009/7/2023
General American Investors Company, Inc. stock logo
GAM
General American Investors
Jeffrey W Priest (CEO)Buy3,381$84,558.81 19,5029/7/2023
Vapotherm, Inc. stock logo
VAPO
Vapotherm
Joseph Army (CEO)Buy21,987$72,776.97 314,0839/7/2023
Universal Insurance Holdings, Inc. stock logo
UVE
Universal Insurance
Stephen Donaghy (CEO)Buy5,000$60,350.00 706,0519/6/2023
Advantage Solutions Inc. stock logo
ADV
Advantage Solutions
David A Peacock (CEO)Buy15,000$40,200.00 1,923,1129/6/2023
HF Foods Group Inc. stock logo
HFFG
HF Foods Group
Xiao Mou Zhang (CEO)Buy10,000$44,700.00 100,0489/6/2023
Nerdy, Inc. stock logo
NRDY
Nerdy
Charles K Cohn (CEO)Buy10,327$50,085.95 10,787,5889/5/2023
Vitesse Energy, Inc. stock logo
VTS
Vitesse Energy
Robert W Gerrity (CEO)Buy5,000$118,000.00 164,0999/5/2023
Energy Transfer LP stock logo
ET
Energy Transfer
Marshall S Mccrea III (CEO)Buy50,000$689,500.00 6,769,2679/5/2023
Thryv Holdings, Inc. stock logo
THRY
Thryv
Joe Walsh (CEO)Buy5,000$100,000.00 435,4139/5/2023
Porch Group, Inc. stock logo
PRCH
Porch Group
Matt Ehrlichman (CEO)Buy138,696$112,343.76 11,832,8059/5/2023
Heartland Express, Inc. stock logo
HTLD
Heartland Express
Michael J Gerdin (CEO)Buy66,048$982,133.76 288,8229/5/2023
LuxUrban Hotels Inc. stock logo
LUXH
LuxUrban Hotels
Brian Ferdinand (CEO)Buy10,000$30,000.00 190,8259/1/2023
Energy Transfer LP stock logo
ET
Energy Transfer
Marshall S Mccrea III (CEO)Buy50,000$682,000.00 6,719,2679/1/2023
Ambac Financial Group, Inc. stock logo
AMBC
Ambac Financial Group
Claude Leblanc (CEO)Buy2,500$33,225.00 502,4169/1/2023
Porch Group, Inc. stock logo
PRCH
Porch Group
Matt Ehrlichman (CEO)Buy121,622$99,730.04 11,694,1099/1/2023
Nerdy, Inc. stock logo
NRDY
Nerdy
Charles K Cohn (CEO)Buy15,650$75,120.00 10,777,2619/1/2023
The Container Store Group, Inc. stock logo
TCS
The Container Store Group
Satish Malhotra (CEO)Buy12,417$30,297.48 737,9388/31/2023
Telos Co. stock logo
TLS
Telos
John B Wood (CEO)Buy35,000$87,850.00 5,048,6048/31/2023
Nerdy, Inc. stock logo
NRDY
Nerdy
Charles K Cohn (CEO)Buy16,190$74,959.70 10,745,6568/30/2023
Asana, Inc. stock logo
ASAN
Asana
Dustin A Moskovitz (CEO)Buy80,000$1,717,600.00 42,282,8028/30/2023
Workday, Inc. stock logo
WDAY
Workday
Carl M Eschenbach (CEO)Buy8,676$2,086,057.44 20,2228/29/2023
Cutera, Inc. stock logo
CUTR
Cutera
Taylor C Harris (CEO)Buy30,000$297,300.00 279,3368/29/2023
Everi Holdings Inc. stock logo
EVRI
Everi
Randy L Taylor (CEO)Buy5,000$71,350.00 522,6228/29/2023
Telos Co. stock logo
TLS
Telos
John B Wood (CEO)Buy90,402$185,324.10 4,893,4178/29/2023
Spectrum Brands Holdings, Inc. stock logo
SPB
Spectrum Brands
David M Maura (CEO)Buy5,000$414,450.00 693,8168/29/2023
Societal CDMO, Inc. stock logo
SCTL
Societal CDMO
J David Enloe Jr (CEO)Buy125,000$50,000.00 1,098,9408/28/2023
Vitesse Energy, Inc. stock logo
VTS
Vitesse Energy
Robert W Gerrity (CEO)Buy5,000$115,400.00 159,0998/28/2023
HF Foods Group Inc. stock logo
HFFG
HF Foods Group
Xiao Mou Zhang (CEO)Buy20,000$96,400.00 90,0488/28/2023
Asana, Inc. stock logo
ASAN
Asana
Dustin A Moskovitz (CEO)Buy80,000$1,744,000.00 42,202,8028/28/2023
Nerdy, Inc. stock logo
NRDY
Nerdy
Charles K Cohn (CEO)Buy15,160$75,042.00 10,713,5668/28/2023
Sirius XM Holdings Inc. stock logo
SIRI
Sirius XM
Jennifer C Witz (CEO)Buy250,000$1,027,500.00 2,812,0008/28/2023
Insulet Co. stock logo
PODD
Insulet
James Hollingshead (CEO)Buy5,550$1,006,825.50 34,1778/28/2023
The RealReal, Inc. stock logo
REAL
RealReal
John E Koryl (CEO)Buy43,251$99,477.30 2,793,2518/25/2023
OneWater Marine Inc. stock logo
ONEW
OneWater Marine
Philip Austin Jr. Singleton (CEO)Buy2,378$60,567.66 580,1838/25/2023
Heartland Express, Inc. stock logo
HTLD
Heartland Express
Michael J Gerdin (CEO)Buy14,023$210,345.00 222,7748/25/2023
Asana, Inc. stock logo
ASAN
Asana
Dustin A Moskovitz (CEO)Buy80,000$1,701,600.00 42,122,8028/25/2023
Potbelly Co. stock logo
PBPB
Potbelly
Robert D Wright (CEO)Buy3,254$24,990.72 683,4868/25/2023
Topgolf Callaway Brands Corp. stock logo
MODG
Topgolf Callaway Brands
Oliver G Brewer III (CEO)Buy10,000$162,100.00 847,5568/25/2023
Rekor Systems, Inc. stock logo
REKR
Rekor Systems
Robert Alan Berman (CEO)Buy10,000$34,500.00 1,135,2198/25/2023
Nerdy, Inc. stock logo
NRDY
Nerdy
Charles K Cohn (CEO)Buy16,455$75,199.35 10,698,4068/25/2023
Amtech Systems, Inc. stock logo
ASYS
Amtech Systems
Robert C Daigle (CEO)Buy8,250$70,867.50 30,2028/24/2023
IN8bio, Inc. stock logo
INAB
IN8bio
William Tai-Wei Ho (CEO)Buy23,800$24,990.00 2,339,5458/24/2023
HF Foods Group Inc. stock logo
HFFG
HF Foods Group
Xiao Mou Zhang (CEO)Buy10,000$48,100.00 2,926,5008/24/2023
Seer, Inc. stock logo
SEER
Seer
Omid Farokhzad (CEO)Buy40,000$98,000.00 807,7448/23/2023
QCR Holdings, Inc. stock logo
QCRH
QCR
Larry J Helling (CEO)Buy1,000$51,000.00 29,6438/23/2023

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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