Insider t

Do insiders buy low and sell h The purpose of this study using insider sale and purchase announcements and their effect on of the firms ’ stock price. Past studies model for event study methodology as used in this study, h regarding the form of market efficiency upheld in the United States. strong form efficient market would not allow any investor to earn an above normal risk adjusted return or to consistently outperform such as an insider trade announcement. insider trade announcement to determine if the reaction occurs either on or before the event, thus upholding the semi-strong form efficient market hypothesis. sale and purchase insider trade announcements, was used to determine adjusted return of the stock price is significantly affected both on t during the defined event period. market hypothesis while the insider purchases analysis odds with the literature as insiders signals, respectively. Evidence of pre also observed. For insider purchases and sales, the insiders follow a pattern of “buying low and selling high”