Not all insider trading is illegal. In fact, executives of companies buy and sell shares of their own companies every day. While you shouldn't base your investment decisions off of what other people are doing, insider buying can provide you with a list of stock ideas worthy of further research.
Peter Lynch, the former manager of the Fidelity Magellan Fund, has one of the best investing track records in Wall Street history. Here's what he had to say on the subject of legal insider trading in his classic book, One Up on Wall Street
"There's no better tip-off to the probably success of a stock than that people in the company are putting their own money into it. Insider selling usually means nothing, and it's silly to react to it. There are many reasons that officers might sell. They may need the money to pay their children's tuition or to buy a new house or to satisfy a debt. They may have decided to diversify into other stocks. But there's only one reason that insiders buy: They think the stock price is undervalued and will eventually go up."
Each day, Jonathan Moreland -- founder of InsiderInsights.com -- publishes a list of the top 10 insider stock purchases and sales, based upon that day's filings with the U.S. Securities and Exchange Commission (SEC). This data appears in the links below.