Tuesday, 9 December 2014

Shareholder dealings

An important event to follow, and a mover of stock prices, is the actions of shareholder dealings in a company.

As an example I will use this week's announcement this week that a member of the Glazer family, who own the majority of Manchester United Football Club.

The statement released read:  “Manchester United plc today announced the offering of 3,000,000 of its Class A Ordinary Shares by the Edward S. Glazer Irrevocable Exempt Trust (the ‘Selling Shareholder’)."

The move caused shares in the club, listed on the NYSE exchange, to drop over 8% on tuesday. Insider selling and buying has a negative or positive reaction in the stock price as it highlights the confidence of executives in short or medium-term price gains.

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