Why You Must Be Cautious When Investing in a Company Going for Share Buyback

What should you look for when investing in a company going for share buyback?

UPDATED: March 2022

Why You Must Be Cautious When Investing in a Company Going for Share Buyback – There are always risks associated with investments, and you must take the good with the bad. Not all of your investments will reap the rewards. Still, at the end of the day, you must understand that the riskier the investment, the higher the rewards.

Intro: Why You Must Be Cautious When Investing in a Company Going for Share Buyback

The current trend in the market is related to share buybacks, and many companies are involved in this process to generate value for their investors and shareholders. The trend has caught the attention of investors looking at companies opting for share buybacks in greater numbers.

The Risks of Share Buybacks for Investors

So, what should you do as an investor? It may seem you will reap greater rewards by investing in a company opting for share buybacks. The company believes that its stock is undervalued in the market and wants to improve share value. That could be profitable for an investor who acts fast and follows the mantra of “buy low, sell high” to maximize their investment.

However, you must also look at the bigger picture when it comes to share buybacks. Don’t assume that the company only has one reason for a buyback. The company could be employing this strategy because it wants to improve earnings per share (EPS) and reward its senior executives. Not all share buybacks are equal, and as an investor, you must look at the profit-generating potential of the business before you decide to invest in its stock.

Should You Invest in a Company That Opts for Stock Buybacks?

As an investor, you must always be willing to lose money to make money. However, that also means you must be smart with your money and decrease the odds of you losing money. You shouldn’t invest in a company simply because they are looking to buy back their shares. Investors should be willing to study the company and decide whether it makes sense after looking at its profit-generating capacity.

Why You Must Be Cautious When Investing in a Company Going for Share Buyback

You must also look at the share buyback size, the duration of the share buyback, and the current stock price. That will give you all the information you need about the share buyback and whether it will reap the results the company wants. Once you have the information, you will better understand why you must be cautious when investing in a company going for share buyback.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

Tips for Using Insider Data

How to take advantage of insider trading information

UPDATED: March 2022

Tips for Using Insider Data – You can make smart investment decisions by looking at insider trading data and using it effectively when making your trades. When you look at insiders making trades, you can easily predict the future performance of the stock. That will give you an advantage over others in the stock market, but making sense of insider data isn’t easy. You must be willing to read between the lines and be smart with your investments if you want to profit from insider trading information.

Tips for Using Insider Data

You must also consider that not all insider trades are equal, as there may be different reasons why insiders are trading stock. You need to differentiate between the trades and put yourself in the shoes of insiders to take advantage of their trades. We will share some tips on how you can do that and use insider trading data to your benefit. Here is what you must focus on.

1. Look at Purchases Instead of Sales

Even though insider sales and insider purchases offer investors valuable insights, research has indicated that insider purchases offer more reliable signals for trades. You can easily interpret insider purchases because if an insider is spending money on a stock, they are confident about the stock’s future performance, expecting its price to increase.

Insiders won’t take risks with their money if they expect stock prices to fall. If they are investing in a stock, they know it will perform well in the market.

2. Look at Trades from Top Executives

If the top executives in a corporation are making trades, you can get excellent insider trading signals from their trades. They have access to all the financial information about the company and will know which stocks will generate great returns on investment.

Therefore, you must follow the trades made by insiders who hold key positions in their company, as they are more likely to make successful trades.

3. Pay Attention to Large Transactions

When you analyze trades made by insiders, you must focus your attention on the size of the transaction. When insiders are confident about a company’s prospects, they will commit more money to the trade. If insiders think that a stock will perform poorly, they will sell it off in large numbers to not suffer a big financial hit.

The size of the transaction, where it is selling or buying stocks, is what will determine the type of trade that is taking place. You can make sense of insider trading data by looking at how confident insiders are at making money from their trades.

Conclusion of: Tips for Using Insider Data

Making sense of insider data isn’t easy. However, knowing the trading signals and motivation of insiders, you can make trades that are beneficial to you. Use the tips we have shared and use insider data to your advantage.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

How to Invest for Retirement

Everything you should know about investing for retirement

UPDATED: March 2022

How to Invest for Retirement – The top priority for most people is to save for their retirement, but that is easier said than done. In general, people live longer nowadays, which means they must have a considerable amount of money saved up to enjoy a comfortable retirement. Not every individual is great with money. With pension plans going out of fashion, it is now the individual’s responsibility to ensure that they have enough retirement funds to last them.

How to Invest for Retirement

The best way to save money for retirement is through investments, and we will share some of the best tips that will help you invest for retirement. Here are some of them:

  • Invest in an asset class that you are comfortable with
  • Use managed accounts if you can’t make your own investment decisions
  • Use several investment accounts when saving up money for your retirement
  • Purchase low-cost investments such as index funds
  • Get a 401(k) plan to automate your savings
  • Don’t make risky investments in stocks
  • Be adaptable and flexible with your investments

The key to learn now, how to invest for retirement is to ensure that you have wisely invested your money to spend your retirement days reaping the benefits comfortably. To ensure such results, you must do the following when you want to invest for retirement:

Start Investing Early

These days, people are working longer and retiring late, but that doesn’t have to be you. If you have plans to retire early, the key is to start investing early to have enough money in the bank when you retire. Time will be your biggest ally once you learn how to invest for retirement, as compound growth will ensure that your money grows significantly as time passes.

The money you choose to invest in your thirties will bear fruit for you when you are in your sixties. During that time, the money will grow depending on the market, and you can expect to gain around 10% growth per year. The more time you spend in the market, the greater the returns you will get.

Create a Retirement Investment Strategy

Before you invest for retirement, you must create a retirement investment strategy for yourself. Hence, having a goal in your mind, which will ensure you have enough funds for your retirement that you can spend the remainder of your years in comfort and luxury. That doesn’t mean trying to predict the future, but making intelligent investment decisions will reap rewards in your retirement. Therefore, you must think about the following:

  • Where you plan to live, and the taxes you will need to pay?
  • How often would you travel?
  • Will you help fund your kid’s college studies?
  • What will be your housing situation? Would you prefer to age in place or live in an assisted living community?
  • What age you want to retire, and how much money you plan to save?

These questions will give you a fair idea of what your cost of living will be in retirement. You should multiply the number you have in mind by the length of time you think you will be retired. Once you have that, you can start thinking about investments you should make to get that retirement fund.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

How to Invest in Blue-Chip Stocks

Everything you should know about Blue-Chip stocks

UPDATED: March 2022

How to Invest in Blue-Chip Stocks – If you’re thinking of expanding your investment portfolio when the market shows volatility, your best bet would be to invest in blue-chip stocks. These are stocks from blue-chip companies, i.e., stable and renowned companies in the US that have been around for a long time. Due to their size and the relatively lesser risk of investing, most investors prefer to invest in blue-chip stocks during times of market turmoil.

How to Invest in Blue-Chip Stocks

The coronavirus pandemic has negatively affected the stock market, which means blue-chip stocks are popular among investors now. So, if you’re thinking about investing, it would be in your best interests to consider investing in blue-chip stocks. Before we get to that, here is everything you should know about them.

What Are Blue-Chip Stocks?

There’s no exclusive definition of a blue-chip stock, as they are generally stocks of a company that meets specific criteria from investors. When people refer to a company as blue-chip, they do so because the company has displayed the following characteristics:

* Substantial Market Cap

When you look at blue-chip stocks, you realize that most of them are giants of the stock market, primarily due to their market capitalization. Stocks with large market caps are generally stocks with more than $10 billion of market capitalization, and some may even have a $200 billion market cap.

* History of Stable Earnings

Blue-chip companies aren’t businesses that have a good track record for a couple of years. Blue-chip companies have stable earnings history, an extensive track record of years, and decades of great earnings before they qualify for a blue-chip ranking.

* Excellent Growth Prospects

To qualify as a blue-chip company, there must be a solid plan for the organization’s future growth. In general, blue-chip stocks have excellent growth prospects and a great earnings record. The company’s growth rate may decline at some point, but the company will continue growing.

* Market Leaders in Blue-Chip Stocks

Massive conglomerates that have been around in the industry are the most popular blue-chip stocks because they have the finances and track record to withstand market downturns. Most blue-chip companies are listed on the S&P 500.

Why Invest in Blue-Chip Stocks?

Most exchange-traded funds and mutual funds have blue-chip stocks in their portfolio, and if you have a 401(k) plan from work, you could be the owner of a blue-chip stock without even knowing about it. Blue-chip stocks are a great investment option because they will always be a safe bet regardless of market conditions. That’s because blue-chip companies aren’t affected as severely as other companies when the economy is experiencing a downturn.

Therefore, if you have invested in blue-chip stocks, you can rely on them to provide you with stable returns on your investment for the long run.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

How to Invest in Dividend Stocks

The best way to invest in dividend stocks

UPDATED: March 2022

How to Invest in Dividend Stocks – If you’re a retiree or want a stable income from your investment portfolio, consider investing in dividend stocks. During uncertain times, the revenue generated from dividends ensures that your portfolio offers steady returns on your investment. Due to this reason, many investors are suddenly shifting their attention to dividend stock investments, and we recommend you should do the same.

What Are Dividend Stocks?

Any stock that regularly pays shareholders dividends is known as a dividend stock. They are generally well-established and large companies with predictable earnings and revenues and want to return their earnings to shareholders through dividends.

The industries that commonly pay out dividends to shareholders are generally energy companies, financial companies, utilities, and healthcare companies. If you’re thinking about how to invest in dividend stocks, consider companies paying higher dividends, which should be around 2% per year.

How to Invest in Dividend Stocks?

There are several methods you can employ when investing in dividend stocks. It is best to use a broker or brokerage firm’s services, as they have more experience in dividend stocks investing. Here is the process you should follow:

1. Research Quality Stocks that have Low Volatility

The first step involves finding dividend stocks worthy of investment. You can do that through a stock screener that your broker will provide. All you need to do is enter your requirements into the screener, and it will provide a list of options. You must ensure that the company you decide to invest in has famous product lines, a well-established reputation, steady revenue growth, and strong management. Also, check the price volatility of the dividend stock.

2. Evaluate the Stock

Once you have selected a company that pays out high dividends, evaluate the stock before adding it to your investment portfolio. The best way to go about is finding stock quotes from reputable financial websites like Bloomberg and MarketWatch. You should compare the company to its competitors and figure out where the stock stands concerning the market. You also need to check the dividend payout ratio to learn whether the company will remain profitable in the future.

3. Decide How Much You Want to Invest

When you have researched and evaluated the stock, you must decide how much you want to invest in the dividend stock. The best advice is to diversify your investment, which means not putting all your eggs in one basket. Dividends aren’t guaranteed, and a company’s financial status can quickly change in these uncertain times. Therefore, you should purchase multiple dividend stocks in different companies so that you have a diverse portfolio.

4. Purchase Stock from the Company or Through Your Broker

The last step is simple; all you need to do is purchase the dividend stock you want from the company or buy it through your broker. You can purchase the stock through a direct stock purchase plan commonly known as the DSSP. Most companies don’t offer them, but the larger, well-established companies do have this option. You can purchase the company’s stock without any fees and are best for investing in companies for several years.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

How to Track Insider Trading

The best ways to track insider trading in your company

UPDATED: March 2022

How to Track Insider Trading – Tracking insider trading isn’t too difficult, even though it may seem impossible to the inexperienced trader. The good news is that stock trading is regulated and must abide by the rules and regulations of disclosure. Hence, all you need is a good internet connection, and you can access all information on insider trading activity online. All insiders who are buying or selling stock have to file reports documenting their trades in the market with the Securities and Exchange Commission (SEC).

How to Track Insider Trading

This measure ensures that their trading activity and all their documents become public knowledge, and anyone can access these documents to track insider trading. The documents can be viewed on the website of the SEC or by visiting a regional office of the SEC. All you need to do is click on the section titled “Search for Company Filings,” and you will find all the information you need on any company’s insider trades.

Among the most valuable documents on how to track insider trading are Form 3, Form 4, Form 5, and Form 144. All these forms provide you with different information regarding the reasons for the trades and the positions of the insiders making those trades. Here is what each form represents:

* Form 3

All insiders must provide an initial statement, and that will be found on this form. Insiders have ten days after they have obtained insider status to file Form 3. The document must be filed even if the insider hasn’t made any trades in the market. The report is necessary for establishing the status of the insider.

* Form 4

You can view insiders’ activity through Form 4, which will show you a change in the insider’s position as a stockholder. You can learn about how many shares have been bought and sold by that person and other relevant changes to the trade. Any insider activity that has been made in a month has to be reported on this document before the 10th of the following month.

* Form 5

Any insider trading activity that is small and insignificant must be reported on this document. Such activity includes internal stock transfers and small stock purchases that don’t need to be reported on Form 4.

* Form 144

When the insider wants to sell restricted stock, which would be stock that the company has awarded them for employment or as compensation. The document acts as a public declaration and informs others about the stock position of the insider. All insiders are restricted from selling their stock for one year. Once insiders decide to sell their stock, they need to file Form 144 and have up to 90 days to sell it. The form must be filed before the date of sale for the stock. Once the sale has been completed, the insider will need to file their Form 4.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

The Power of Share Repurchases

Find out the value of share repurchases for companies

UPDATED: March 2022

The Power of Share Repurchases – Purchasing stocks of companies in the middle of repurchasing their shares is one of the most effective selection strategies for stocks. There is no denying that share repurchases hold immense value for shareholders, the company, and investors looking for new shares in the market. The power of share repurchases transcends all boundaries of the stock market as it gives value to everyone involved in the process. The benefits of this process have made share repurchases attractive to many companies today.

The Power of Share Repurchases

Even though you should look how to invest in companies repurchasing their shares, there are times where you should avoid making a potentially harmful investment. You can never fully tell what the reasons behind the share repurchase had been for the company. You should consider several factors to evaluate whether an investment makes sense for you. That will allow you to develop a strategy that reaps results and rewards for you in the long run.

Why Companies Repurchase Shares?

Several reasons might prompt a company or firm to repurchase its shares in the market. The most obvious one would be that they think their shares are undervalued. However, there are other motives for companies to repurchase shares. These include the following:

* Buy Stock Cheaply

The duration in which the company stock price is down is considered the best time for repurchasing shares, which allows the company to drive the price up. It also sends investors the message that the company’s management thinks that the stock has been trading less than the intrinsic value in the marketplace. Hence, you should look for companies involved in stock buyback programs to drive their share price higher as an investor.

* Offset Dilution of Company Stock

Most companies reward their employees by allowing them to purchase shares instead of offering them dividend payments. Therefore, a share repurchase may be taking place to dilute the outstanding shares in the market and reward employees at the same time. It doesn’t mean that the stock is undervalued, but that the company is compensating its workforce.

* Manage or Boost Earnings Per Share (EPS)

Share repurchases are also used for managing and boosting the company’s earnings per share (EPS). This metric is valuable to corporate executives and investors since they are the ones who will reap the benefits when the company earnings are high. Companies used stock buyback programs to control the number of shares and drive the earnings per share value higher.

Conclusion – The Power of Share Repurchases

As an investor interested in buying stocks of companies involved in share repurchases, you need to look at the company’s real motives. There could be several reasons why a company has implemented a stock buyback program and understanding that will allow you to take advantage of the power of share repurchases.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

Addressing the Challenge of Insider Risk

How to decrease the risks of insider trading in your company

UPDATED: March 2022

Addressing the Challenge of Insider Risk – Even though cybercrime continues to rise, one of the most dangerous threats that companies face today is insider trading. No company wants to be caught red-handed in facilitating insiders to take advantage of nonpublic information to profit.

Addressing the Challenge of Insider Risk

The penalties of insider trading are significant and deter most people from engaging in this illegal activity. Still, the greed for more money often causes insiders to take risks they would rather not take.

Therefore, it is up to the company to ensure that they keep an eye on their insiders and watch their trades to check if they aren’t making insider trades. That is hard to do in large organizations, and that is the reason so many companies are focusing all their efforts on addressing the challenge of insider risk. To compound matters, there are different types of insiders that the company should be aware of. These include the following:

* Malicious Insiders

These are insiders who don’t care about the company’s reputation or about the financial penalties they would be charged with if found guilty. Their motivation is to make money quickly, and they will go to great lengths to get any advantage they can.

* Negligent Insiders

These are insiders who aren’t trying to do something illegal, but their incompetence or failure to follow protocol end up engaging in insider trading. Most companies are wary of negligent insider trading because it can be challenging to prove that the insider didn’t know they were doing something illegal.

* Careless Insiders

These insiders have made a careless mistake that has resulted in insider trading and serious harm to the company. They aren’t motivated by making more money but ended up using the wrong information to make their trades.

Determining the Risk of Insider Trading

Almost every company is taking the threat of insider trading seriously because they can face serious penalties and loss of reputation in the industry. No one wants to be charged with insider trading, and therefore, they are coming down hard on individuals guilty of this activity. The best way of addressing the challenge of insider risk is to train and educate your employees about what constitutes illegal insider trading.

There is also legal insider trading, but there is a fine line that individuals must not cross at any point. As a corporation, you must implement a system that checks all trades and ensures that insiders are not trying to access nonpublic information to benefit and profit in the stock market. Once they are guilty of insider trading, it can be extremely difficult to prove their innocence, which is why it is best to avoid all instances of insider trading.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

Everything You Need to Know About Inflation-Proof Investments

Making investments that are protected against inflation

UPDATED: March 2022

Everything You Need to Know About Inflation-Proof Investments – The rising inflation rates present a unique challenge for investors. They faced a double-edged sword, as inflation will reduce the value of their investments.

Everything You Need to Know About Inflation-Proof Investments

The best way to counter this is to ensure you invest your money in investments that gain an advantage from inflation and avoid investments that are hit hard by it. The key lies in finding investments that gain in value during periods of inflation. The effect of COVID-19 has been devastating on economies, and many experts are bracing themselves for inflation.

The Problem with Inflation

It is so important that you learn everything you need to know about inflation-proof investments, because the economy isn’t in the healthiest state right now. With oil prices rising, and many businesses having shut down or reduced staff due to the coronavirus, it is causing some investors to panic. The Federal Reserve and the Government are fearing that there will be a catastrophic economic downturn, which is why they are injecting liquidity into the financial markets and the economy.

The U.S. dollar may experience inflation due to the injection of trillions of dollars into the economy. These liquidity injections are designed to ensure that money gets into consumers’ hands and that financial assets’ values don’t drop. One can hope this will prevent a collapse of the financial markets and ensure that the economy doesn’t experience a massive decline.

Inflation-Proof Investments You Should Consider

When you invest for inflation, there can be no guarantees about the results because even though some investments are safe from inflation, you can never guarantee the returns. That is the trend among investments in this coronavirus era. If employment rates continue falling, it will take down consumption, which will mean the start of a deflationary period.

Therefore, you should prepare for the future and invest in inflation-proof investments that will yield results for you in these uncertain times. These include the likes of:

·        Use Money Market Funds for Cash

You should keep all your cash investments in money market funds if you are worried about inflation. Even though money market funds don’t pay anything, they are the perfect cash investment option when the economy experiences inflation. Money market funds will rise in value as interest rates increase, making them the perfect choice for cash investments.

·        Real Estate Isn’t Affected by Inflation

Real estate is the ideal investment for you during periods of inflation because real estate value rises when there is high inflation. When rents increase, people want to own property to take advantage of the tax benefits and keep the money rolling during inflation. The best option is to directly invest in commercial or residential properties, but investing in real estate investment trusts is also a good idea.

Conclusion of Everything You Need to Know About Inflation-Proof Investments

You can never fully prepare for inflation, but you must look at the market conditions before making any investment decisions. The current state of the economy all points towards a period of high inflation in the near future, which is why it is wise that you start thinking about inflation-proof investments right now.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .

What Is a Blackout Period?

Explaining what happens during a blackout period in insider trading

UPDATED: March 2022

What Is a Blackout Period? – There are specific rules and restrictions imposed on public company executives and insiders when buying and selling company shares. That prevents them from illegally benefiting from insider information and gaining the upper hand over other investors in the stock market. Publicly traded companies may also choose to implement a blackout period during which company executives and employees will be restricted from buying or selling company shares.

What Is a Blackout Period?

A blackout period it the time when a publicly traded company’s directors, officers, and certain employees (insiders) can’t trade the company’s stock. Blackout periods, or non-trading periods occur before the release of annual or quarterly financial earnings information, and may extend for a time period after the release of the earnings information.

Who Sets the Blackout Period?

Most Investors don’t know that it is the publicly traded company, not the SEC (Securities and Exchange Commission), that sets the blackout period. However, the SEC’s Rule 10b5‑1 of the SEC Act of 1934, creates exceptions, or basically a “safe harbor” in which the various officers, directors, and some employees of the business, by establishing a trading plan, may trade a company’s securities even during a blackout period, and even when they have inside knowledge of material nonpublic information. Because of the various exceptions, that is why it is so important to know what is a blackout period?

A trading plan might be an established employee stock ownership program that calls for a set number of shares of the company to be purchased each month. In general, a trading plan removes discretion for the sale or purchase of stock from the individual and creates an automatic program.

Most of the time, a blackout period is implemented before a quarterly earnings report or before earnings announcements. That ensures insiders who have access to nonpublic information can’t trade illegally in the stock market. The blackout period can be imposed on only the company’s top executives or on all company employees.

What is the Purpose of a Blackout Period?

The blackout period’s main purpose is to prevent illegal insider trading, so that people with access to nonpublic information in the company can’t use that information to profit or prevent loss in the stock market. Corporations aren’t legally obligated to impose blackout periods, but many corporations still choose to implement them to limit illegal trading activities.

Most companies choose to impose recurring blackout periods whenever they are about to release an earnings report. The blackout period would start from the last day of the financial quarter and last until two or three days after the company files their financial results. That ensures the public has enough time to study the financial results and then make investments decisions. In essence, Blackout periods level the playing field for investors and ensure that no illegal trading activity occurs.

What Are the Penalties of Trading During Blackout Periods?

The company can take strict action against any individual who is found guilty of trading during blackout periods. They could choose to let the employee or executive go and may even place a fine on them in many cases. Most companies have removed directors from their post and levied pay cuts for trading shares during a blackout period. Suppose you have access to nonpublic information and willingly choose to use it for your benefit. In that case, you can be subjected to criminal penalties, including a fine and even jail time.

Therefore, you must understand the rules surrounding blackout periods and refrain from trading within that period. Employees and executives who choose to ignore blackout periods and continue trading will only be creating more problems for themselves in the future. That is why all executives and employees must understand what is a blackout period so that they don’t become a victim of illegal insider trading.

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About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at BuybackAnalytics.com  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

Use of Our Articles: You are welcome to benefit from lots of FREE articles that you can read and learn from on our website blog.  You are also welcome to share or post this information as helpful content to your website or blog audience as long as the article, and this entire byline are left intact, word for word.  If you would like us to provide you with more, or bulk content for your blog or website to educate your audience on basic to expert financial and investor information & techniques, feel free to contact us at info@buybackanalytics.com .