Table of Content

Insider Trading Analysis Video Courses

Look for insider open market transactions

Most individuals buy and sell their stocks in the open market. They find the bid and asked price for the shares and execute their trades in the open market. But insiders have numerous other methods for acquiring or disposing of shares such as private placement, exercise of options. Some of the transactions are not in the open market and therefore aren’t registered in the trading volume and other statistics. This is just common sense that if insider can buy their company’s shares at certain percent below the market value directly from the company without paying commissions and trading costs, they can still make a nice profit even if the stock price moves only sideways over the next year. Such an advantage obviously influences insiders’ risk/reward calculations and their decision of whether to buy.
 
Therefore, when insiders buy their company’s shares in the open market, they have to make the same risk/reward calculations individual investors do. They must figure in the trading costs of paying commissions and buying at their stock’s ask price. A decision that buying shares on the open market is worth the risk even with these costs is a much stronger signal to us.
 
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Academic Research & Book Review

Insider trading is of interest to many different constituencies academics, who are interested in the informational efficiency of prices; security market regulators, who are interested in its effect on fair and orderly markets; and investors, who are interested in using the trades of insiders as a potential source of information when making investment decisions. It is likely that compensation professionals will also become interested in this information as more and more employees are paid with stock and stock options in the firms. We have collected respectable academic researches that proved insiders made excess abnormal return.
 
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Introduction of Insider Alpha Return

What is Insider Alpha Return?

Academic studies using 10 years worth of US company insider trading data suggest that corporate insiders earn above normal profits on their trades. The findings suggest that company insiders as a group are better informed than the average investors about the prospects for their respective firms. "Insider Alpha Return" reflects our belief that the tracking and reporting of company insider trades can help investors make better informed decisions about security selection and thereby improve their investment returns.
 
Every day, investors have the opportunity to put their money into more than 15,000 US stocks. But such a huge opportunity is also hungely confusing. How do you start narrowing down your investment choices? All investors can potentially increase their returns if they start their stock picking by looking at insider trading flow. It should come as no surprise to anyone that insider trading occurs every day in the stock market. However, it is impossible to screeen all daily insider filings for all listed companies. InsidersLab.com provides an easy to use research tools that allows investors to monitor potential insider investment opportunities and help investors to seek "Insider Alpha" in an effective and systematic manner.
 
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Disclaimer

InsidersLab.com focuses on tracking and monitoring insider trading activities in the US stocks market. "Insider Trading" means trading activities created by company directors, senior officers, individual substantial shareholders, and institutional shareholders. InsidersLab.com does not represent, warrant, nor endorse the accuracy, reliability, completeness or timeliness of any of the information, content, views, opinions, recommendations or advertisements (collectively, the "Materials") contained on, distributed through, or linked, downloaded or accessed from any of the services contained on the website (the "Service"), nor the quality of any products, information or other materials displayed, purchased, or obtained by you as a result of an advertisement or any other information or offer in or in connection with the Service (the "Products"). InsidersLab.com collects insider trading information from different public sources such as newspapers, financial information websites, and government statistics publications. You hereby acknowledge that any reliance upon any Materials shall be at your sole risk. In particular, none of the Materials is provided on the InsidersLab.com website or emails with a view to inviting, inducing or encouraging any person to make any kind of investment decision. Securities or other investments referred to in the Materials may not be suitable for you and you should not make any kind of investment decision in relation to them without first obtaining independent investment advice from a person authorized to give it.