Stock Talk Insiders - Get Access (2024)

FAQs

How to get insider information for trading? ›

The SEC's Edgar database allows free public access to all filings related to insider buying and selling of stock shares. A number of financial information websites offer easier-to-use databases of insider buying.

Trading by specific insiders, such as employees, is commonly permitted as long as it does not rely on material information not available to the general public. Many jurisdictions require that such trading be reported so that the transactions can be monitored.

Insider trading is the selling or purchase of stocks and other securities based on non-public, material insider information. People found guilty of Illegal insider trading can receive up to 20 years of jail time and a $5 million fine.

The Company's officers, directors, certain employees, certain consultants and certain stockholders (and their family members) are considered “Insiders.” Insiders are subject to insider trading laws that affect the sale and purchase of the Company's stock.

InsiderTracking is the only free source for insider trading alerts and reports across both the US and Canadian stock markets.

Use the Commitments Of Traders (COT) as a reference points for price ranges with the biggest concentration of the trading volume. You could additionally use the Point Of Control (POC) of the Market Profile indicator, which we discussed in this article, for identifying the maximum volume areas for any period of time.

Probably the most useful sources of information, corporate filings provide investors with information detailing companies' financial health, future prospects and past performance. This is the kind of information you need to judge whether certain stocks, bonds or mutual funds are smart investments.

Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.

What is the problem with insider trading? ›

The main argument against insider trading is that it is unfair and discourages ordinary people from participating in markets, making it more difficult for companies to raise capital. Insider trading based on material nonpublic information is illegal.

High insider ownership typically signals confidence in a company's prospects and ownership in its shares. This, in turn, gives the company's management an incentive to make the company profitable and maximize shareholder value.

Insider trading is deemed illegal when the material information is still non-public and comes with harsh consequences, including potential fines and jail time.

Whether or not you're invested in your company's stock via an employer plan, you're free at any time to make purchases on the open market — at least, if you work for a publicly traded company. If so, you can buy or sell as many shares as you want any time the market is open, just like any other investor could.

The notion that only a minority of actual insider trading violations (less than 20%) are detected and prosecuted is consistent with theories of rational crime such as the literature following the Becker (1968) framework.

The individual charged with insider trading must have been aware that the information was material and nonpublic. For example, if you overhear a conversation on a train but have no knowledge that it is insider information, you cannot be convicted if you act on this information.