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Insider Buys B. Riley Financial's Shares

A Form 4 filing filed with the SEC on Thursday, September 3 showed that Chairman and Co - Riley Bryant R bought 700 shares of B. Riley Financial Inc (NASDAQ:RILY)at an average price of $27.15. The transaction moved the executive's stake in B. Riley Financial Inc. to 5,575 shares. Shares of B.

· 09/03/2020 11:29

A Form 4 filing filed with the SEC on Thursday, September 3 showed that Chairman and Co - Riley Bryant R bought 700 shares of B. Riley Financial Inc (NASDAQ:RILY)at an average price of $27.15. The transaction moved the executive's stake in B. Riley Financial Inc. to 5,575 shares. Shares of B. Riley Financial rose by 0.2% from the previous closing price.

The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

When an insider buys stock after an important sell off, that can indicate the insider's faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to "take some profit" and "lock in a gain."

Important Transaction Codes

Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. If the transaction was an open-market transaction, that means that the insider made a concious decision for the company's stock moving forward.

Transaction codes besides P or S aren't relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option.