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Insider Selling Is a Harbinger of Nothing

By Doug Ehrman - Apr 12, 2013 at 7:57PM

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The trading decision of company executives is only important if you dig deep enough.

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 (MSFT -0.23%), Oracle (ORCL 2.37%), and Qualcomm (QCOM 0.79%) have been unusually high lately. While the absolute numbers are small, the ratio is fairly drastic.

In the video below, 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.

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Stocks Mentioned

QUALCOMM Incorporated Stock Quote
QUALCOMM Incorporated
$131.60 (0.79%) $1.03
Oracle Corporation Stock Quote
Oracle Corporation
$68.63 (2.37%) $1.59
Microsoft Corporation Stock Quote
Microsoft Corporation
$252.56 (-0.23%) $0.58

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