Notes

Inside Scoop : Understanding Stock Insiders
Do you know who controls the market in alternative data stocks? Spoiler alert: not all the well-known investors are on TV. insider beta Welcome to the world of the stock insiders, those who have a front row seat at all the action. Take a look behind the curtain to see why these people are so captivating.





First of all, what exactly are these "insiders"? It is important to note that we are talking about the CEO, directors and largest shareholders. These are people with access to non-public information that can make or break a stock's performance. Imagine possessing an accurate crystal ball telling you if a firm's quarter is going to be stellar or disasterous. It's almost like that for them.

Now, let me share a quick anecdote. Unknown to me, a friend of mine worked at a company in which the CEO of that firm bought large amounts of stock before announcing their groundbreaking product. The stock rose dramatically overnight! Coincidence? Do you think it's a coincidence? The insiders of companies have their finger on the pulse in a way that outsiders cannot.

But hold your horses--insider trading isn't always as shady as it sounds. There are strict rules governing how and when insiders can buy or sell shares to prevent unfair advantages. It's like playing poker where everyone must show their cards periodically.

Why is it important to pay attention to insider activity then? Well, following what insiders do can offer valuable clues about a company's future prospects. If several executives purchase shares it could mean they have confidence about the future. On the flip side, if they're selling like hotcakes, maybe it's time to rethink your investment strategy.

We'll add a bit of humor to this: Have you heard "Do as the Romans Do" when in Rome? When investing, you should "watch what the insiders are doing." The advice is not foolproof but it sure beats picking stocks by throwing darts!

Next time you are deciding which stocks to purchase or sell, look at what the experts do. It might give you an extra edge that you have been searching for.
Website: https://insiderbeta.com/