InsiderFlow › Glossary › What is SEC Form 4?

What is SEC Form 4?

Form 4 is the filing through which executives and major shareholders disclose buying or selling their own company's stock, within two business days.

CEOs, CFOs, board members and anyone owning over 10% of a listed US company are "insiders" by law: every trade in company stock must be reported to the SEC via Form 4, which becomes public almost in real time.

Purchases are the most studied signal: an executive buying with their own money usually believes the stock is undervalued. Sales are more ambiguous: they can stem from taxes, divorces or simple diversification.

Concrete example

When several executives of the same company buy in the same month ("cluster buying"), historical statistics show above-market subsequent returns.

How you see it in InsiderFlow

InsiderFlow surfaces the most relevant Form 4 trades and explains them: who bought, how much, and what it might mean.

Frequently asked questions

Is Form 4 illegal insider trading?

No, the opposite: it's the legal, transparent channel. Illegal is trading on non-public information.

How long do insiders have to report?

Two business days from the trade: far more timely than the quarterly 13F.