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Data Analysis

Nominal Value

The total dollar amount of an insider transaction, calculated as Shares multiplied by Price.

Definition

In the context of insider trading analysis, nominal value refers to the gross fiat value of a transaction. It is derived by multiplying the exact number of shares transacted (from Form 4 Table I) by the exact price per share paid or received.

Why it matters for Whale Tracking

Tracking shares alone is misleading because a 10,000 share purchase of a $2 stock is vastly different from a 10,000 share purchase of a $500 stock. Nominal value normalizes the data into standard USD, allowing for accurate comparison between different companies and executives.

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Technical Nuance

Nominal value provides a standardized measure for comparing transactions across different securities and time periods, ensuring consistency in data analysis.

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Real-World Example

"If a director buys 5,000 shares at $200 each, the nominal value of the transaction is $1,000,000. This $1M metric is what feeds into the Net Capital Flow algorithms on the terminal."

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