Director share dealing in small-cap shares is always worth noting for the simple fact that this segment of the market can be more volatile than larger caps, so if other investors follow the lead of insiders this will have a greater impact on the subsequent share price performance. Moreover, unlike mega and mid caps where director sales can sometimes have little impact on a company's share price, it is more difficult for directors to take large positions in smaller-cap companies. So when these insiders are staking their own money, rather than just matching investments in share incentivisation schemes they have been awarded, it is well worth further investigation to find out whether there is an investment opportunity by following their lead.
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