What Is a 4?

Form 4 is filed by corporate insiders — directors, executive officers, and shareholders owning more than 10% of a company — whenever they buy or sell company stock. It must be filed within 2 business days of the transaction. Form 4 is the primary public record of insider trading activity at public companies.

Why It Matters

Insider transactions are a closely watched signal in finance. When executives buy their own company's stock with their own money, many investors interpret it as a bullish signal — the people who know the company best are betting on it. Conversely, heavy insider selling can be a warning sign. Form 4 data is real, timely, and publicly available.

Key Sections

• › Reporting person name and title
• › Issuer company name and ticker
• › Transaction date
• › Security type (common stock, options, etc.)
• › Transaction type code (P=purchase, S=sale, A=award)
• › Number of shares and price per share
• › Shares owned after the transaction

Questions This Filing Answers

• ? Is the CEO buying or selling stock?
• ? Are insiders bullish or bearish on their company?
• ? How much stock does the CFO own?
• ? Did a director just buy a large amount of shares?