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This form is used to report changes in the beneficial ownership of securities, specifically related to insiders of the company, as mandated by the Securities Exchange Act of 1934.
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Form 4 is a document that must be filed with the Securities and Exchange Commission (SEC) to report transactions in the securities of a company by its officers, directors, and certain shareholders.
Officers, directors, and certain shareholders of a company who own more than 10% of the company's stock are required to file Form 4.
To fill out Form 4, individuals need to provide their name, title, and the details of the transaction including dates, amount of shares bought or sold, price, and nature of the transaction (for example, purchase or sale).
The purpose of Form 4 is to provide transparency and allow investors to be informed about the trading activities of company insiders to prevent insider trading.
The information that must be reported on Form 4 includes the insider's name, relationship to the company, transaction date, number of shares bought or sold, type of transaction, and any reportable securities.
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