What is SEC Form 4?
SEC Form 4, officially titled "Statement of Changes in Beneficial Ownership," is a document that must be filed with the U.S. Securities and Exchange Commission whenever corporate insiders buy or sell shares of their company's stock.
The form is part of the SEC's effort to promote transparency in the securities markets. By requiring prompt disclosure of insider transactions, Form 4 helps ensure that all investors have access to the same information about what company executives and large shareholders are doing with their holdings.
Who Must File Form 4?
Three categories of "insiders" are required to file Form 4:
- Corporate Officers: CEO, CFO, COO, and other executive officers
- Directors: All members of the board of directors
- Beneficial Owners: Anyone who owns more than 10% of any class of the company's registered securities
These individuals are considered to have access to material non-public information about their companies, making their trading activity particularly relevant to other investors.
Track SEC Form 4 Filings in Real-Time
See the latest insider transactions as they're filed with the SEC. Use natural language to search for specific companies, insiders, or transaction types.
View Live TransactionsWhat Information Does Form 4 Contain?
Each Form 4 filing includes detailed information about the transaction:
- Reporting Person: The insider's name and relationship to the company
- Transaction Date: When the purchase or sale occurred
- Transaction Type: Whether it was a buy, sell, gift, or other type of transaction
- Securities: The class of securities involved (common stock, options, etc.)
- Amount: Number of shares traded
- Price: The price per share for the transaction
- Ownership: Total shares owned after the transaction
Why Form 4 Matters for Investors
Insider trading data from Form 4 filings is valuable because it shows what people with the most knowledge about a company are doing with their own money. Research has shown several patterns that investors often watch for:
- Cluster Buying: Multiple insiders buying at the same time may signal confidence in the company's future
- Large Purchases: Significant dollar investments by insiders can indicate strong conviction
- Unusual Activity: Changes in typical trading patterns may precede news or events
While insider selling is more common (executives often sell for diversification or to cover taxes), insider buying is generally seen as a stronger signal since insiders are spending their own money to acquire more shares.
Frequently Asked Questions
Who must file SEC Form 4?
Corporate officers (CEO, CFO, etc.), directors, and beneficial owners holding more than 10% of a company's stock must file Form 4 when they buy or sell shares.
How quickly must Form 4 be filed?
Form 4 must be filed within two business days of a transaction. This quick turnaround ensures investors have access to timely insider trading information.
Where can I find SEC Form 4 filings?
Form 4 filings are publicly available on the SEC's EDGAR database. Trabud aggregates and analyzes these filings, making them searchable with natural language queries.
What information does Form 4 contain?
Form 4 includes the insider's name, relationship to the company, transaction date, number of shares traded, price per share, and total ownership after the transaction.