Major Increase in Selling by Insiders is Warning to Stock Market Investors to Watch Out
Major Increase in Selling by Insiders is Warning to Stock Market Investors. Company insiders have superior knowledge of the direction of future company growth. Therefore they have advanced knowledge of where their companies’ stock price is headed. Recent insider selling is on pace for a two-decade high (see chart below). That should be ringing alarm bells for savvy investors. These investors know heavy insider selling is often followed by big market tumbles.
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