When are insiders required to file ownership reports?
The frequency (and accuracy) of the filings really depends on the insider. We’ve discovered that some insiders are extremely precise, others are careless, and some may even be oblivious to the law. The SEC requires insiders to file ownership reports in certain situations: • Within ten days of first becoming a 10% (or greater) owner, an officer, or a director, insiders must file a form 3 (their “initial statement of beneficial ownership”). • On or before the effective date of stock or options grants, insiders must file a form 3. • Within two days of acquiring or disposing of shares or options, insiders must file a form 4 (their “statement of changes in beneficial ownership”). If they forget about this filing, then they must file a form 5 (their “annual statement of changes in beneficial ownership”) within 45 days of the company’s fiscal year end for that year. • Finding an error on a previous filing requires insiders to file an amendment (a form 3/A, 4/A, or 5/A, as appropriate) to the
