How to Track Insider Trading
UPDATED: March 2022
How to Track Insider Trading - Tracking insider trading isn't too difficult, even though it may seem impossible to the inexperienced trader. The good news is that stock trading is regulated and must abide by the rules and regulations of disclosure. Hence, all you need is a good internet connection, and you can access all information on insider trading activity online. All insiders who are buying or selling stock have to file reports documenting their trades in the market with the Securities and Exchange Commission (SEC).
How to Track Insider Trading
This measure ensures that their trading activity and all their documents become public knowledge, and anyone can access these documents to track insider trading. The documents can be viewed on the website of the SEC or by visiting a regional office of the SEC. All you need to do is click on the section titled "Search for Company Filings," and you will find all the information you need on any company's insider trades.
Among the most valuable documents on how to track insider trading are Form 3, Form 4, Form 5, and Form 144. All these forms provide you with different information regarding the reasons for the trades and the positions of the insiders making those trades. Here is what each form represents:
* Form 3
All insiders must provide an initial statement, and that will be found on this form. Insiders have ten days after they have obtained insider status to file Form 3. The document must be filed even if the insider hasn't made any trades in the market. The report is necessary for establishing the status of the insider.
* Form 4
You can view insiders' activity through Form 4, which will show you a change in the insider's position as a stockholder. You can learn about how many shares have been bought and sold by that person and other relevant changes to the trade. Any insider activity that has been made in a month has to be reported on this document before the 10th of the following month.
* Form 5
Any insider trading activity that is small and insignificant must be reported on this document. Such activity includes internal stock transfers and small stock purchases that don't need to be reported on Form 4.
* Form 144
When the insider wants to sell restricted stock, which would be stock that the company has awarded them for employment or as compensation. The document acts as a public declaration and informs others about the stock position of the insider. All insiders are restricted from selling their stock for one year. Once insiders decide to sell their stock, they need to file Form 144 and have up to 90 days to sell it. The form must be filed before the date of sale for the stock. Once the sale has been completed, the insider will need to file their Form 4.
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About the Author & How YOU Can Profit: This article is the copyrighted product of the team at BuybackAnalytics.com .
Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept: Follow the trades of Insiders - CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don't:
LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation's Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)
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