Definition: is the process of buying or selling a company’s shares by its own director that is usually forbidden during several months of a year. For example, it isn’t allowed to perform such a transaction for a pre-determined amount of weeks prior to the declaration of the firm’s annual figures so that the directors can’t send false signals about the state of the company. Such a restriction is a result of the fact that directors usually have more information about the firm’s prospects than anyone else and can use that information to manipulate potential investors and competitors.
In a Sentence:
After the latest directors’ dealings became available to the public, we have noticed an increased activity on the local stock market.
If you’re a potential investor looking for a profitable opportunity, it’s recommended you follow the news relating any directors’ dealings that occurred in the companies that interest you.
As Mr. Webster was an insider, he knew all the details of FOI’s directors’ dealings before they were learned by the financial press.
Synonyms and related words: shareholder, annual report, financial press, investor, company’s prospect