Buying And Selling Of Shares By Directors Explained

“Follow the insiders”

“Sabayan mo ang insider buying.”

“Sabayan mo ang insider selling.”

Malamang ay nakakita ka na ng ganitong mga post sa trading related na groups at social media.

Kung sa PSE ka nagtitrade ay familiar ka sa disclosure na ganito.

D is for selling (disposed).

A is for buying (acquired).

Why Do Insiders Buy And SeLL?

Directors and other insiders sell for a lot of reasons. Most of those reasons ay hindi related sa company but personal na mga reasons. May mga gustong bilhin. May mga babayaran.

Si Jeff Bezos nakailang benta na ng Amazon shares niya to fund his other businesses.

Directors and other insiders buy stock for a lot of reasons as well. They may think na mura na ang price ng stocks nila or may confidence sila sa company nila to grow in the future or para ipark ang pera nila.

Anuman ang reason nila sa pagbili ng stock does not guarantee na aakyat ang price ng stock/company nila na yun.

Buy And Sell Signal

May mga traders at investors na ginagawang buy and sell signal ang pagbili at pagbenta ng mga insiders.

Kung bago ka lang sa stock market ay normal na maiisip mong sundan ang buying at selling ng mga directors at insiders. Think of it as how other traders and investors view share buybacks of companies.

Some see it as a positive move dahil mura na masyado ang stock nila kaya may buyback while some see it as waste of money kasi mas mainam gamitin ang pera sa new projects at expansion.

The more na nagkakaexperience ka ay the more naoopen ang mata mo na unless sobrang significant ng size na binibili or binibenta ay wala itong factor or indication sa future price ng stock.

You will probably understand it more while you gain more experience. Sobrang daming buying at selling of shares na disclosure ka pang makikita while nasa stock market ka.