| "The purchases and sales made by directors of shares in the publicly quoted companies for which they work. It is perfectly legal for directors to buy or sell shares in their own company provided certain rules are observed. Directors are not allowed to use unpublished price sensitive information which they have got from their job to reach a decision about buying and selling shares (known as insider dealing). Directors are not allowed to buy or sell shares in their company for two months before the announcement of results (the 'closed period'). The process of tracking directors dealings has become a more accepted means of identifying stocks with potential - if the directors are buying, they think the shares are undervalued |
