The term 'Insider' refers to Directors, Officers, and Other people who have access to non-public company information and who can influence the direction of the firm. Also include is those people or organizations that owns or has claims on 10% or more of the companies equity. All these people or entities must file insider trading with the SEC.
Insiders have the right to buy and sell securities of their own company so long as they comply with securities laws and rules and file a report with the SEC. This generally pertains to publicly trading companies.
The SEC regulations generally require corporate Insiders of publicly listed to report the details of all buys and sells of company securities within two (2) days of a transaction. Insider transactions are filed electronically with the SEC in the Form 4 filing. You can read about the SEC Form 4 at the SEC website.
Insiders must report transactions done both on and off stock exchanges in any securities issued by a reporting issuer or in derivatives that result in a claim on securities issued by the firm. So, the requirements cover not only stocks, but also warrants, options and other derivatives.
Some companies or Insiders do not show up in our reporting. There can be many different reasons for this, but one of the most common is that we cannot gather information on companies or Insiders that do not file eleectronically. It may be because the company just listed on an exchange and there are no Insider transactions.
Studies have shown, using US data, that corporate insiders may earn above normal profits on their trades. The finding indicate that company Insiders as a group may be better informed than the average investor about the future value of their companies.
Books
"The Insider’s Dossier: How To Use Legal Insider Trading To Make Big Stock Profits" by Andrew Packer
"Profit From Legal Insider Trading" by Moreland, Jonathan
"Investing Intelligence from Insider Trading" by Seyhun, H. Nejat
"Chapter 11. The Edgar ® Online Guide to Decoding Financial Statements" by Taulli, Tom
Articles
"Insider Trading, Earnings Quality and Accrual Mispricing." by Beneish, M.D. and Vargus, Mark E. - The Accounting Review (October 2002): 755-791.
"Decoding Inside Information" by Cohen, L., Malloy, C., and Pomorski, L. - (October 2010). Available at NBER.
"Are Insider Trades Informative?" by Lakonishok, J. and Lee, F. - The Review of Financial Studies (spring 2001).
"Investment Intelligence from Insider Trading." by Miller, Edward M. - The Journal of Social, Political and Economic Studies (winter 1999): 477-484.
"Shorts and Insiders." by Purnanandam, Amiyatosh K. and Seyhun, Hasan Nejat. - (July 30, 2007). Available at SSRN.
"Some Insider Sales Are Positive Signals." by Scott, J. and Xu, P. - The Financial Analysts Journal (May/June 2004): 45-51.
"Insider Trading During the Technology Bubble." by Tartaroglu, Semih. - (February 2009). Available at SSRN.
“The Profit Secrets of Insider Trading” by InvestingAnswers on InvestingAnswers
“How the SEC Tracks Insider Trading” by Elvis Picardo on Investopedia
“Here’s How To Profit From Company Insider Trades” by Jim Osman on Nasdaq.com
Nobody and nothing can guarantee you will make money trading in securities. However, there are many studies that indicate (see above) can be an potential indicator of a company's future outlook and value.
It is best to use any insider trading information to identify potentially profitable trading ideas by incorporating insider transactions into an overall diversified portfolio strategy and due diligence process.
Insider-Intel.com is the only service currently that gives you the advantage of Artificial Intelligence! In the daily emailed report you get AI research and findings for historical Insider trades for a company along with AI research on the current Insider Trade. The report will also include an AI estimation of probabilities for profit or loss for the current Insider trade based on what AI finds in its historical and current research.
Studies have shown, using US data, that corporate insiders may earn above normal profits on their trades. The finding indicate that company Insiders as a group may be better informed than the average investor about the future value of their companies.
Books
"The Insider’s Dossier: How To Use Legal Insider Trading To Make Big Stock Profits" by Andrew Packer
"Profit From Legal Insider Trading" by Moreland, Jonathan
"Investing Intelligence from Insider Trading" by Seyhun, H. Nejat
"Chapter 11. The Edgar ® Online Guide to Decoding Financial Statements" by Taulli, Tom
Articles
"Insider Trading, Earnings Quality and Accrual Mispricing." by Beneish, M.D. and Vargus, Mark E. - The Accounting Review (October 2002): 755-791.
"Decoding Inside Information" by Cohen, L., Malloy, C., and Pomorski, L. - (October 2010). Available at NBER.
"Are Insider Trades Informative?" by Lakonishok, J. and Lee, F. - The Review of Financial Studies (spring 2001).
"Investment Intelligence from Insider Trading." by Miller, Edward M. - The Journal of Social, Political and Economic Studies (winter 1999): 477-484.
"Shorts and Insiders." by Purnanandam, Amiyatosh K. and Seyhun, Hasan Nejat. - (July 30, 2007). Available at SSRN.
"Some Insider Sales Are Positive Signals." by Scott, J. and Xu, P. - The Financial Analysts Journal (May/June 2004): 45-51.
"Insider Trading During the Technology Bubble." by Tartaroglu, Semih. - (February 2009). Available at SSRN.
“The Profit Secrets of Insider Trading” by InvestingAnswers on InvestingAnswers
“How the SEC Tracks Insider Trading” by Elvis Picardo on Investopedia
“Here’s How To Profit From Company Insider Trades” by Jim Osman on Nasdaq.com
Insiders have to report their inside trading within 48 hours to the SEC. Throughout the business day the SEC intakes Insider trading forms and processes them.
Insider-Intel.com gathers the Insider buying and selling when reported to the SEC for the business day, processes the data that evening and emails the Insider Report. Giving you the information you need the next trading morning.
This is the fastest reporting process possible at this time.
Insider-Intel.com is in development of a service to text or email an Insiders reporting immediately when the SEC accepts the form. This will facilitate faster information to the subscribers of this service by up to a days time.
Here are the indexes used for comparison between stock performance and the exchanges tradable index, and their symbols:
We include 3 month, 6 month, and 9 month stock's gain or loss, where possible, to give a basic understanding of what the stock did concerning performance within an easily understandable timeframe. Only so much data can be effectively displayed with a report. You are encouraged to research the stock proformance beyond the 9 month period if you wish to have more information.
The Insider Daily Report is sent out each week day when the markets are open between the closing time, 4:00pm EST, and generally before the opening of the next day, 9:30am EST. We strive to beat the market opening 100% of the time. But sometimes there are so many trades, or the SEC has issues processing the filing input, the report may be delayed. The goal is to give you plenty of time to make any trades you deem desirable.
There are opinions that Insiders have general market information that the general public does not have access to. Insider get information from rich friends, insiders of other companies, other people In-The-Know, and they have access to data the general public does not have. So the opinion goes that large differences in buying vs selling, or the opposite, can indicate a broader inside view of US markets. Insider-Intel.com will give you the Insider information, buying and selling, as a bases for your own research into general market trends.
The SEC requires Insiders to file three forms, Form, 3, 4, and 5. The actual purchase and sell of insider company shares is filed within Form 4.
Insider-Intel.com tracks the required Form 4 for Inside Traders filed to the SEC. And then within Form 4 there are many types of transactions, see the SEC Form 4 Info Document.
Insider-Intel.com tracks for you the buy and sell transactions of Insiders, which are company Directors, Officers, Other (Non-executive people who still have company inside knowledge), and Pecenters (an owner of 10% or more).
The buying and selling of Isnider company stocks is a clear indicator of the potential Insider outlook of the companies future. Buys and Sells are also what you can perfrom as an Insider, allowing for the same advantages of Insiders.
Each emailed report has:
General opinion is that buyers tend towards profit more then selling short from Insider selling. Insider selling can be for many reasons, buying a house, children's college education, fancy vacation, etc. However, buying is an Insider
investing their own money because they know, or believe because of things they know, the investment is a good one.
The percenters, those investors who own 10% or more of the companies stock might be the exeption to this opinion. Percenters buy and sell for business purposes generally based on things they know or believe.
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NOTE - If you do not cancel your subscription and the credit card cannot be processed, you are still responsible for payment. If you do not want to be liable for payment you must go to the website and cancel your subscription. A credit card expiring or having your card on record being replaced by the card company cannot be relied on as a cancellation.