There are many reasons why one can be misled by directors’ share dealings

A common belief among many investors is that share sales by executive directors who sit on the boards of publicly quoted companies are usually a sign of trouble ahead. Conversely, many believe that share purchases by such “insiders” are a sign of confidence in the company’s future.

The reality is that, in many cases, share dealing by directors (be they purchases or sales) can be indicative of a range of factors that have ...