YCO14 Sep 2010 19:06
Bobbyshafter - I think Mr Smith purchased his shares quite legitimately in the timeframes laid down.
Under UK stock exchange rules, directors can't buy or sell shares when they're in a 'closed period'. This is the shorter of two months before half-year or annual results are issued and the time between the end of the accounting period and the day the results are released. If a company issues quarterly results, then it's just one month.
Directors also can't deal if they're in possession of information that might move the share price if it was made public -- a profit warning or major new contract for example. So there could several months of the year when directors can't buy or sell shares.