Insider buying

Insider buying is when a company's executives, directors, or other high-level employees purchase shares of their own company's stock. You'll see these transactions reported in SEC filings (official documents companies file with regulators), and they matter because insiders usually have the best information about how the business is actually performing. When insiders buy their own stock, it can signal they believe the company is undervalued or headed in a good direction—though it's not a guarantee. For example, if a tech company's CEO buys 10,000 shares after a stock price drop, it might suggest she thinks the dip is temporary and the stock will recover. It's worth paying attention to, but always look at the full picture before investing.