Editor's note: As part of our partnership with PBS's Nightly Business Report, TheStreet's David Peltier will appear on NBR Tuesday (check local listings) to profile small-cap stocks with recent insider buying.
NEW YORK (TheStreet) -- There are several reasons why executives might sell their own company's stock, but there's generally only one reason why they buy it -- to make money. Legal insider trading is something I've followed ever since my RealMoney colleague Jonathan Moreland turned me onto it a dozen years ago.It's difficult to argue that anyone better knows the health and near-term direction of a company's business than its executive management team. But as with any strategy one employs in fundamental analysis, I look at insider buying as part of the overall investment thesis. Insiders sometimes make losing trades too; so make sure there are other factors that could make a stock a worthy investment.