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Insider filings (Form 4)

Reports in which company officers, directors and large owners disclose their trades in their own stock.

Market Structure & FlowIntermediate

Definition

In the US, insiders must file a Form 4 within two business days of a trade. Open-market purchases are often viewed as more informative than sales, because insiders sell for many ordinary reasons, including scheduled plans, taxes and diversification.

Watch out for

One sale means little. A consistent pattern of sales or purchases over time is more meaningful. Insider data describes what insiders did, not what will happen.

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