Shares Owned By Insiders
Select Equity |
Insiders Shares | = | Executives Shares | + | Employees |
Shares Owned By Insiders In A Nutshell
First, you want to understand if the executive members of the company have their best interest aligned with the company. An example is that the CEO may own 45% of the shares, which would mean that he or she has a stake in the company and wants the company to succeed, which is in the best interest of everyone. Conversely, if the CEO only maintains a 10% stake, it may not be in their best interest what the company does and could have other interest then that of raising the share price. Secondly, you want to see how the movement of shares are and if people inside the company have been selling the stock, that could indicate there are internal issues that outsiders may not know about or may ever know, but it raises a red flag for you to pay attention.
When looking at stocks and the companies behind them, many of us take a look at items such as shares shorted, current price, and other data points to help formulate an opinion. One area many don’t consider and that is the amount of shares owned by insiders, and this is just as important as any other data. An insider is an employee or executive of the company, and why it is important to know how much they own is as follows.
Closer Look at Shares Owned By Insiders
Shares owned by insiders should always be on your radar because it can provide information the chart or fundamentals may be missing. A report may read one thing but the share movement of insiders could be saying another. It’s important to look at all aspects of the company but this one is certainly over looked. Take in all the details and understand why shares are moving the way they are and why the insiders hold what they do. Once you figure that out, move to the next objective until you feel comfortable about the company.
All Fundamental Indicators
Pair Trading with Investor Education
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Investor Education position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Investor Education will appreciate offsetting losses from the drop in the long position's value.Other Consideration for investing
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |