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When Stock Investing Follow the "HANDS-ON" Insiders

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When stock investing it is wise to focus on transactions by insiders with a hands-on role in the company. Trades by chairman, president or chief executive officer, vice president, chief financial officer, or any C-Level officer should be give credence. Though directors generally lack day-to-day responsibility, their stock investing transactions are also useful to analyze because of their access to information about the company's financial condition and strategy.
 
Academic studies have determined that the insider activity of CEO, vice presidents, and directors is more profitable to follow than that of beneficial owners. Keep on applying common sense when judging the relative importance of stock investing trades made by hands-on insiders; a director who is also a C-Level officer is probably in a better position to judge his company's prospective profitability than a director that is not privy to the day to day operations of the company.
 
The best case is the insider being a director, a C-Level officer, and a beneficial owner of more than 10% of a class of the company's equity securities. Not only is this executive (the "First Class Insider") well positioned to judge both the strategy and operations of his company, he or she also has enough riding on the stock's performance to really pay attention to both.
 
Do you know the Research Tools categorizes all insider trade data by Director, C-Level Officer, 10% Shareholders ,and "First Class Insider"?
 

 

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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.