WINDERMERE, Fla. (Stockpickr) -- Corporate insiders sell their own companies' stock for a variety of reasons. They might need the money for a big personal purchase such as a house or to fund a child's wedding. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes. Other times they sell because they think their stock is fully valued. Some dump their own stock because they're worried about the state of the economy and think shares could go down significantly.
But they only buy their own shares for one reason: because they think the stock will go up substantially.
The key word in that last statement is "think." Just because a corporate insider thinks his stock is going to go up, that doesn't mean it will. Insiders can have all the conviction in the world that their stock is a bargain, but if the market doesn't agree with them, it won't matter.
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