Ask Wealthy Joe: What Is Insider Buying?

insider buying insider trading

Good morning!  

I welcome questions from my readers.  Please email me at wealthyjoeinvesting@gmail.com if you have an investing-related question you’d like me to answer on the blog.

Q: What is the difference between insider buying and insider trading?

A: Insider buying is when officers, directors, or employees of a company buy stock in their own company.

This is different from insider trading, which is illegal.  Insider trading is when corporate insiders make trades based on information that is non-public.

Insider buying is based on public information, and occurs when people within the company believe the stock price is going up.

Does insider buying mean you should buy as well?  The answer is often times yes.  But not all the time.

I personally don’t make buying decisions based on insider buying only.  But it’s nice to see insiders buying a stock you own, because it means that they also believe in the future of the company.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

 

 

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How’s Your Net Worth?

Good morning!

As we close out the year and begin a new one, I wanted to revisit one of my first posts.  Net worth is the most important indicator of financial health and fitness.  Take stock of your net worth now, and reevaluate it at the end of March.

Here is the post: What’s Your Net Worth?

I wish you all a happy, healthy and wealthy 2019!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)