1. What is Insider Week Trade Return?

The Insider Week Trade Return measures the percentage gain or loss on an investment made by company insiders (executives, directors, etc.) within a week of their trade. It helps evaluate the performance of insider trades.

2. How Does the Calculator Work?

The calculator uses the return formula:

Where:

• \( Profit \) — The gain or loss from the trade (in currency)
• \( Investment \) — The initial amount invested (in currency)

Explanation: The equation calculates what percentage of the original investment was gained or lost.

3. Importance of Return Calculation

Details: Calculating trade returns helps assess the effectiveness of insider trading strategies and can indicate potential market movements based on insider activity.

4. Using the Calculator

Tips: Enter both profit and investment amounts in the same currency. Investment must be greater than zero for valid calculation.

5. Frequently Asked Questions (FAQ)

Q1: What constitutes an "insider" in trading?
A: Insiders are typically company executives, directors, or large shareholders who have access to non-public information.

Q2: Why focus on one-week returns?
A: One-week returns can show immediate market reaction to insider trades before broader market factors come into play.

Q3: What is considered a good insider week return?
A: Returns vary by industry and market conditions, but consistently positive returns may indicate valuable insider information.

Q4: Are there legal concerns with insider trading?
A: Legal insider trading is reported to regulators, while illegal insider trading uses material non-public information.

Q5: How should this calculator's results be used?
A: Results should be one factor among many in investment analysis, not the sole basis for decisions.