Some kinds of insider trading are perfectly legal – and they offer useful signals about a company’s health

Insider trading often gets a bad rap, but this piece clarifies that some forms are not just legal but can actually provide valuable insights into a company’s future health. By examining insider trades, investors can glean early signals about potential layoffs and their possible impact on profitability. This nuanced perspective highlights how these legal activities can serve as a barometer for gauging corporate performance, offering a strategic advantage for those who pay attention. Understanding this can help investors make more informed decisions.