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This document serves as a report for changes in beneficial ownership of securities by corporate insiders, allowing transparency in the trades made by directors and officers of a company.
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FORM 4 is a document that corporate insiders must file with the SEC to report their ownership of, and transactions in, their company's securities.
Corporate insiders such as officers, directors, and beneficial owners of more than 10% of a company's stock are required to file FORM 4.
FORM 4 must be filled out by providing details about the insider's transactions, including the date of the transaction, the amount and price of the securities, and whether the transaction was an acquisition or disposition.
The purpose of FORM 4 is to provide transparency and inform the market about significant transactions conducted by corporate insiders, helping to prevent insider trading.
FORM 4 requires reporting of basic details such as the insider's name, relationship to the company, transaction date, transaction type (acquisition or disposition), number of shares involved, price per share, and the nature of the ownership.
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