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Looking for Stocks to Buy? Insider Purchases are Easier to Interpret Than Sales

BUY NOW!
When you're looking for stocks to buy here is an easy rule of thumb. Insiders buy stock on the open market because they think that they price will rise.
 
Consider this. There are many reasons for insiders to sell. They may need money to buy a new cat or house, or to send a kid to college. For some founding executives, the stock holding in the company they helped build may represent the vast majority of their net worth. In such cases it's just prudent for them to diversify their assets. Therefore, there are usually more open-market sales filed with the SEC than open-market purchases.
 
In a contrast, there is usually just one reason executives buy shares in their company in the open market: They think the price will rise.
 
The major flag for identifying stocks to avoid and possibly sell short is insiders selling after their company's shares have already declined substantially. This is a strong negative signal.
Do you know you can use the filtering feature in Research Tools to look for open market "Buy" transaction only?
 

 

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