This study documents insider trading activities of all companies listed on the KSE during the 1995-1997 period. Insider trading is common during the sample period. The number of insider sales is more than that of insider purchases. Insider trading does not do a good job in predicting cross-sectional stock returns. But, there are significant differences in realized stock returns between insider sales and insider purchases. These results differ from those of the U.S. However, insiders in aggregate predict future market movements, even though the results are mainly driven by smaller firms.
