Insider buying

Insider buying is when company executives, board members, or other insiders purchase shares of their own company's stock. You'll see these transactions reported in SEC filings (official documents filed with the Securities and Exchange Commission, the government body that oversees stock markets). It matters because insiders have access to confidential information about the company's health and prospects—so when they buy their own stock, it can signal confidence that the company is undervalued or heading in a good direction. For example, if the CEO of TechCorp buys 10,000 shares at $50 each, some investors view it as a bullish sign. That said, insider buying isn't a guarantee of future gains—insiders can be wrong too.