Question- insider trading

Stoney_21 said:
whatcha mean?
Click to expand...

Means....everything that is known about a stock will be priced into the value very quickly as information is disseminated. And if your just now reading about it in a rag like Barron's....you can rest assured that any added value that information has will already have been taken advantage of by people with a lot more money than us.

Whether or not you will make money buying this stock will have nothing to do with any tidbit of information you may glean from reading Barron's.
 
ACstudio said:
Means....everything that is known about a stock will be priced into the value very quickly as information is disseminated. And if your just now reading about it in a rag like Barron's....you can rest assured that any added value that information has will already have been taken advantage of by people with a lot more money than us.

Whether or not you will make money buying this stock will have nothing to do with any tidbit of information you may glean from reading Barron's.
Click to expand...

This is if you subscribe to Eugene Fama's Efficient Market Theory.

AC have you ever read "When Genius Failed" it is my favorite book, I think you would like it.
 
Stoney_21 said:
if corporate insiders are buying a lot of stock in their own company is that a good indicator that the stock will go up significantly? i was looking at XOOM and ARAY on this list- they look like good buys now

http://online.barrons.com/articles/apples-itunes-boss-sells-28m-in-stock-1415226454
Click to expand...

When you see a lot of insiders buying stock in their company, they tend to have a good understanding of the fundamentals of their company and very often it will be followed by an increase in stock price within a few months. But it takes a little digging to make sure they are not just exercising options that are expiring. Do some research to to gain some insight on what the directors and executives are doing.
 
CostaKapo said:
This is if you subscribe to Eugene Fama's Efficient Market Theory.

AC have you ever read "When Genius Failed" it is my favorite book, I think you would like it.
Click to expand...

I haven't read it straight through but I'm familiar with the highlights.

And ye I pretty much am a subscriber to efficient market hypothesis. Because ....why not?
The problem with thinking you know something is that you have no way of knowing the magnitude of the effect of that thing. And more importantly....you have no way of knowing what you don't know and the magnitude any of that will have.
 
ACstudio said:
If you know about it, then it's already priced in.
Click to expand...

It is as plain as a pikestaff...

the guy is trying ascertain a pattern of stock movement after a large sale of shares from inside a company..

I believe in case of a sale, market is subject to basic economic laws, particularly to a rule of supply and demand. Such injections strikes the balance to supply's side, so it is wise to expect some short -term dip in price..

Who knows maybe he lives hard by apple CEO Tim Cook :p
 
If there are more number of insiders buying stocks for the same company than they they are sure that the price will rise.
 
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