Following the Smart Money

What do company insiders and big institutional players know that the ordinary investor doesn't? Plenty

Many investors interpret a strong level of buying of a company's stock by insiders -- directors, officers, or other key employees -- as a bullish sign. After all, the reasoning goes, insiders have a front-row seat from which to view an outfit's prospects -- and whether the shares are attractively valued. (Of course, the notion also applies to insider selling on the flip side, but that's a subject for another story.)

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