Filings & regulation
Insider dealing and disclosure
Trading by company insiders, which is legal when disclosed and illegal when based on private information.
How it works
Directors and senior staff may trade their own company’s shares, subject to closed periods and prompt public disclosure. Trading on material non-public information is a criminal offence.
Disclosed insider buying is watched because insiders sell for many reasons and buy for essentially one.
Where it misleads people
Insider sales are weak signals — they are driven by tax, diversification and scheduled plans. Clusters of open-market purchases by several insiders at once carry more information.
Related terms
- Regulatory filingA document a company or investor is legally required to submit and make public.
- Form 13FA quarterly disclosure of US equity holdings by institutions managing over $100 million.
- Material informationInformation a reasonable investor would consider important in deciding whether to trade.
Mentioned in
More in Filings & regulation
- Institutional investor
- Investor compensation scheme
- Financial statements
- Know your customer
- Annual report
- Material event filing
- Suitability and appropriateness
- Quarterly report
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Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.