The Stock Market's Favourite Secret

When you are looking at a list of stocks in the morning paper it can be pretty daunting deciding which stock to invest in. The more you follow the markets and invest the more you start to build up knowledge about what are the best signs to look for when selecting stocks.

One of the best signs is “director buying”.

What is director buying? When a director buys shares in a company they run, they have to tell everyone and that is done via the Stock Markets “regulatory news.”

Regulatory news is the stock market’s equivalent to the BBC. Any news a company has which may affect its share price in any way must be released through this channel. A director buying stock in their company counts as news that must be released immediately.

If any of the companies in your list have directors buying then that’s a very strong indication the share is cheap. A director has a good idea if things are going well and if he is tempted enough to buy it’s a good sign.

Company news is an important resource to read up on when selecting a share.

You can find this kind of company news on sites like ADVFN for free.  If you register with ADVFN, you will receive a free guide outlining this point and the other 4 in full detail on ‘How to Invest’ in 5 easy steps.

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Comments

1. William C. Croft says:

   September 11, 2013 at 5:26 pm

   Interesting article. I have never considered monitoring whether a director was buying stock in his/her company.

2. Robert James says:

   January 28, 2014 at 6:02 am

   Wow, it is totally amazing !

3. tom says:

   February 2, 2014 at 1:01 pm

   if it sounds to good to be true then it probably is

4. Wayne says:

   June 26, 2014 at 9:52 am

   Makes sense. Didn’t know about the Directors having to give that information and it being available to anyone.

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