Many forms of insider buying are completely legal and you can improve your odds of investing success by knowing when it’s happening.

Insider buying is a matter of public record and is very easy to research.  One place you can look is in Yahoo Finance.  Just go to www.Yahoo.com, click the Finance option, pick the stock you are interested in and click the insider buying tab.

You’ll see some VERY interesting information.  You will see insider selling and insider buying.

Insiders sell for many reasons.  They may be selling because they think the stock will be going down, or that the business will not be doing well in the near future.  Or they may be selling because they have to pay their children’s tuition – or pay for a big wedding coming up – things like that.  There are many reasons why insiders sell.

But there is only one reason why they buy.  And that is because they think the business is going to do well in the future.  And they feel so strongly about this they are willing to risk THEIR hard earned money.

So if you see a lot of insider buying, it’s a clue that those in the know see future value in the company and the stock prices.  They may not always be right, but they probably know more than you and me, so it’s worth noting.

You might want to look into this before you make an investment in a company.  I think it will be time well spent.

Have a nice day – John