When a company’s executives purchase securities of their company and disclose it to the public:

Question

When a company’s executives purchase securities of their company and disclose it to the public:

A) It is considered illegal
B) This strategy is considered a Flight to Quality
C) The market does not react
D) It is generally seen as a positive sign for the company
E) It is generally seen as a negative sign for the company

Answer 1

When a company’s executives purchase securities of their company and disclose it to the public:

Insider buying is bullish. Investors assume that the executives expect the company to do well and are betting their own savings on it. D)