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What Is SEC Form 4 and Insider Trading Activity?

Form 4 is an official US SEC filing in which a company’s executives and major holders disclose buying or selling its shares.

Explained

Form 4 must usually be filed within two business days of the trade. An insider buying with their own money tends to draw more attention than selling, since selling can happen for many personal reasons. This is legal, disclosed trading, unlike trading on undisclosed inside information.

Example

Example with made-up numbersA company vice president buys 10,000 shares at 20 dollars, a 200,000-dollar trade that shows up on Form 4 within two business days.

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Educational content, not investment advice.