directors’ (adjective, di-rec-tors’, \ dəˈrektərz \) dealings (noun, deal-ings, \ ˈdilɪŋz \)
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
