Insider Activity

Form 3

Also known as: initial statement of beneficial ownership

DEFINITION

Form 3 is filed within 10 days of a person becoming an officer, director, or 10%-or-greater beneficial owner of a public company. It reports the insider's starting position — every share class they own, plus derivatives like options and RSUs. Unlike Form 4, it captures status rather than a transaction.

WHY IT MATTERS FOR RETAIL INVESTORS

For retail investors, Form 3s appear when a new executive joins or a fund crosses the 10% threshold. They are less actionable than Form 4s but reveal something useful: how much skin the insider already has in the game on day one. A new CEO with zero ownership reported on a Form 3 is a different signal than one who already bought 50,000 shares.

OFFICIAL SEC SOURCE

https://www.sec.gov/about/forms/form3.pdf

RELATED TERMS

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