Money Buzz 4/04
Tracking insider selling and recover tax overpayments
Opinions expressed by Entrepreneur contributors are their own.
If you've been tracking insider sales to time your owntransactions, watch out. Monitoring corporate insiders' stockselling as a market signal is growing less reliable as an investingstrategy, according to H. Nejat Seyhun, a finance professor at theUniversity of Michigan, Ann Arbor, and author of Investment Intelligence From InsiderTrading (MIT Press).
While insider selling is on the rise-higher now than it'sbeen since 1986, according to Vickers Stock Research-that trend ismisleading, says Seyhun. The huge number of options granted toinsiders over recent years has, in turn, increased the ratio ofinsider sales to purchases in the open market.
Continue reading this article — and all of our other premium content with Entrepreneur+
For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:
- Digestible insight on how to be a better entrepreneur and leader
- Lessons for starting and growing a business from our expert network of CEOs and founders
- Meaningful content to help you make sharper decisions
- Business and life hacks to help you stay ahead of the curve