Form 3
M
Marcus ThornePlain English Definition
SEC Form 3 is the initial statement of beneficial ownership for insiders. It must be filed no later than 10 days after a person becomes an officer, director, or 10% shareholder, even if they don't yet own any stock.
The Trader's Take
The Signal
While often viewed as administrative, a Form 3 that discloses a large pre-existing position can signal immediate confidence from a new executive.
The Noise
A Form 3 with zero shares is a neutral reporting requirement for new hires.
Actionable Insights
- 1Watch for "New Executive" alerts on the dashboard.
- 2Compare a new insider's initial holdings with their predecessor.
- 3Follow-up with Form 4 filings from the same person within their first 90 days.
Regulatory Context & Context
Common Misconceptions
It doesn't report a trade; it reports a status.
Filing a Form 3 doesn't necessarily mean the person is buying shares today.
Frequently Asked Questions
When is Form 3 due?
Within 10 days of becoming an insider.