What is insider buying?

Insider buying happens when a director, officer, or executive takes a position in shares of their own company. Insider buying is not the same thing as the illegal activity of insider trading. Large insider buys are notable because they signal that the insider believes in the company and expects shares to increase in value.

Is insider buying a crime?

Insider buying is not a crime when the buying is based on public information. Additionally, since insiders have unique insights into their own companies, they often gobble up often shares when they believe the stock is undervalued. That's why people pay attention to insider buying.

Why are large insider buys important?

Large insider buys are notable because they signal that the insider believes in the company and expects shares to increase in value. Insider buying is not a crime when the buying is based on public information.