There are many ways to pick winning shares, and each way has its share of supporters and detractors. However, when it comes to following directors’ deals, it is difficult to find many detractors.
This refers to the buying or selling of shares in a company by directors of the company itself.
Trading based on insider information is of course illegal, but directors can deal in their own shares provided the deals are reported appropriately to the regulators. Details of such trades are then issued to the public each trading day.
There are certain times in the trading year when such transactions are not allowed. These are called closed periods; these normally last for two months prior ...