Plus500 disclosed yesterday that its bosses had spent a combined £7.5 million buying stock in the financial betting company this week and investors promptly followed suit, pushing shares in the business up by almost 10 per cent.
The rally came two days after Plus500’s shares shot up following its first-half results, when the online trading business revealed that it planned to buy back as much as $50 million of stock.
The executives’ buying spree and the prospect of a buyback have boosted the shares in the short term, but what of the longer term?
While listed in London, Plus500 is based in Israel and focuses on contracts for difference (CFDs). These are derivatives that let investors make high-risk, leveraged bets on movements in financial assets