Following on from my article last week, regarding the usefulness of following insider buying trends, this week some additional data has emerged that adds an element of suspicion to legal insider dealing.
U.S. chief executives release good news for insider trading purposes
Specifically, it has emerged this week, according to a study published within the FT, that U.S. chief executives systematically time the release of good news to get an upward "pop" in their company shares before they sell.
The findings, yet to be published, show a small uptick in the volume of discretionary news increases, when the release of the news was at the discretion of the chief executive, in months when executive share compensation schemes vested. It was found...
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