This article looks at a handful of stocks under $5 that have seen insiders scooping up shares. Insider trading – the legal kind – involves management or large owners purchasing shares of the companies they work for or continue investing in. They are typically aware of different information types, including the inner workings.
These insider trades will be reported in things like Form 4s or Schedule 13s, showing the purchases made and the sizes of the purchases. Filings like the Form 4 will also show the average prices paid and how the shares were purchased (whether in the open market or via a private transaction).
This post originally appeared on PennyStocks.com