Form 4: insider trades, explained. When executives buy their own stock, it has to be publi
By Nexqual Desk ·
Form 4: insider trades, explained. When executives buy their own stock, it has to be public.
Officers, directors and 10%+ owners must report their trades in the company’s stock to the SEC within two business days on Form 4.
Trade → 2 business days → Form 4 public
A CEO buys stock on Monday. The filing must be public by Wednesday.
How to read it:
• Insiders sell for many reasons: taxes, houses, diversification.
• They usually buy for one: they think the stock is cheap.
• Several insiders buying at once (a cluster) is a stronger signal.
Watch out: Grants and option exercises are not buys. Only open-market purchases (P) show real conviction.
Next up: Forward P/E.
Education only. Not financial advice.
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Posted on Nexqual Sonar — the social network for the stock market. Not financial advice.