Directors' dealings

Introduction| Course| Q&As | Recommended reading| Quiz |

Introduction

Context

Directors' dealings provide signals about what the people who run a company think about its share price. By themselves, they are not reason enough to buy or sell a share, but taken together with other indicators, they can be strong indicators of whether a share is undervalued or overvalued.

Prior knowledge required

None.

Contents

1. What are directors' dealings?
2. Distinction from insider dealing
3. Two premises and a fallacy
4. Size of transaction
5. Who knows best?
6. Safety in numbers
7. Dealings in the context of recent share price
8. The closed period
9. Follow the leader
10. Sales can sometimes be a good sign
11. Playing the percentages
12. Other factors
13. Conclusion

Web www.incademy.com