Analyzing Insider Buying and Selling

I have been doing a lot of work with insider activity this week. I have revisited the papers of such luminaries as James Lorie, Nejat Seyhun and Josef Lakonishok on the subject.

There is a definite tendency for stocks with insider buying activity to produce excess returns. As with all studies of this type, there is an issue with the size of the sample group. Although the group may indeed produce excess returns, it may be impossible for any individual, or even a fund, to own them all due to restrictions involving the size of the account or the size of the company....608 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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