What is a Form 4? Insider trades explained
Form 4 is how company insiders report buying or selling their own stock. What it shows, who files it, how fast, and what the transaction codes mean.
What a Form 4 is
A Form 4 is the SEC filing company insiders use to report a change in how many shares they own. Insiders here means a company's officers, its directors, and anyone who owns more than 10% of a class of its stock.
Each Form 4 lists who traded, their role, the date, the number of shares, the price, and how many shares they own afterward.
How fast it's filed
Most Form 4s are due within two business days of the trade, so insider buying and selling becomes public quickly. Filing Radar shows them minutes after they reach EDGAR.
The transaction codes
Every trade carries a one-letter code. The ones people watch most: P is an open-market purchase, bought with the insider's own money. S is an open-market sale. Others are routine: A is a grant or award, M an option exercise, F shares withheld to pay taxes, G a gift.
Because grants, exercises and tax withholding happen on a schedule, many investors focus on P and S.
Planned trades
A Form 4 also shows whether a trade was made under a 10b5-1 plan: a trading plan set up in advance. Planned sales are common and say less about what an insider thinks today. More on 10b5-1 plans.
Quick answers
Who has to file a Form 4?
Officers, directors and owners of more than 10% of a company's registered stock.
How long after a trade is a Form 4 filed?
Usually within two business days.
What does code P mean on a Form 4?
An open-market or private purchase of shares.
More guides
What is an 8-K · 13D vs 13G · What is an S-1 · What is Form 144 · What is an NT 10-K or NT 10-Q · What is a 10b5-1 plan · 10-K vs 10-Q
Data: SEC EDGAR, public domain. Not investment advice. Terms · Privacy · Learn · Live filings