The paper discusses the financial and economic impact of legal insider trades executed by corporate insiders on the Austrian stock market between May 2005 and May 2007. Many previous studies on the implications of legal insider trading on capital market efficiency have examined whether insiders earn abnormal profits relative to the market with regard to their directors’ dealings, and whether outsiders can earn abnormal profits by mimicking the insiders’ transactions, while no such study has been conducted with respect to the Austrian stock market yet, stressing the scientific and practical importance of this study. With support of the publicly available directors’ dealings database provided by the Austrian Financial Market Authority, it is analyzed whether insiders earn abnormal profits associated with their trades in Austria. Furthermore, it is tested whether the position of the insider within the company correlates with the magnitude of abnormal profits gained. More precisely, the study reveals whether executive directors are expected to earn higher abnormal profits than members of the supervisor board due to their superior insight into the firms’ operations. Finally, it is exami...