The sale of stock by company insiders can be of great significant or have little meaning at all. A recent release of the newsletter Crosscurrents noted that insider sales of Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL), and Qualcomm (NASDAQ:QCOM) have been unusually high lately. While the absolute numbers are small, the ratio is fairly drastic.
In the video below, Fool.com contributor Doug Ehrman discusses if this should be a warning sign for these companies, the technology sector, or the market as a whole. He then looks at some of the regulations that impact insider selling and helps to put these figures in context.
Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft, Oracle, and Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.