Be careful of the signals that you read into selling by corporate insiders: not only do these individuals have different objectives in mind, they view the world in a very different way.
Recent media reports, such as an article in Barron’s, have drawn attention to what they describe as a surge in stock market selling by corporate insiders at what may be two or three times the normal pace. Traditionally, this has been interpreted as a negative signal for stock prices. Who better than insiders would know when to buy or sell? But things are not always that simple.
The Insider and the Appraiser
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