Directors' Dealings

Directors' dealings refer to the buying or selling of a company’s shares by its board members or senior executives. These transactions are closely monitored and must be reported to regulatory bodies to ensure transparency and prevent insider trading. Directors' dealings are often seen as a signal of confidence (or lack thereof) in the company’s future performance, as insiders generally have better insights into the company's health and growth potential. Investors pay close attention to directors' dealings because they provide clues about what senior management believes about the company's stock value.

Example

The CEO of a company buys additional shares of the company, signaling confidence in its future performance.