What evidence is there that directors dealings are a positive indicator of share price movements? By the time I read about directors dealings, is it too late?
There is enough evidence to support the argument that when directors buy/sell shares in their own company, they do so because they think the shares are undervalued or overvalued. There is also plenty of evidence that their judgement is right in more cases than it is wrong. But the signals are not always correct. Directors’ dealings should only ever be a factor in your decision-making, not the prime determinant. With any widely reported event likely to affect a share price, there is a danger that it will already be built into the price by the time you hear about it. The speed with which you get the information is obviously a factor. But in general, the significance of directors’ dealings does not evaporate within days. The fact that you do not act within days does not mean you will have missed the opportunity for good. I would like to invest in stocks and shares. However, I do not know where to look or begin. My colleague used to buy and sell shares, it seemed like an easy process. Afte
