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
- What are directors' dealings?
- Distinction from insider dealing
- Two premises and a fallacy
- Size of transaction
- Who knows best?
- Safety in numbers
- Dealings in the context of recent share price
- The closed period
- Follow the leader
- Sales can sometimes be a good sign
- Playing the percentages
- Other factors
- Conclusion
