Transaction Code A

Marcus Thorne

Last Updated: January 5, 2026

Plain English Definition

Transaction Code A on Form 4 indicates a grant or award of securities, typically stock options, restricted stock units (RSUs), or other equity compensation. This represents compensation rather than a purchase decision.

The Trader's Take

The Signal

Code A grants are neutral to slightly positive—they represent compensation awards rather than investment decisions. Large grants can signal company confidence in executive retention and performance.

The Noise

Routine Code A grants as part of standard compensation packages are expected and don't typically move stock prices.

Actionable Insights

1
Distinguish Code A grants from Code P purchases—grants are compensation, not investment decisions.
2
Large Code A grants can signal company confidence in executives and retention efforts.
3
Monitor for changes in grant patterns that might indicate compensation strategy shifts.
4
Understand that Code A grants often vest over time and may not be immediately tradeable.

Regulatory Context & Context

Transaction Code A is used on Form 4 filings to report grants and awards of securities. These are typically part of executive compensation packages and must be disclosed under Section 16 reporting requirements.

Common Misconceptions

Code A grants are not purchases—they're compensation awards that don't require the executive to invest their own money.

Grants often have vesting schedules and may not be immediately tradeable.

The value of Code A grants is typically based on grant date fair value, not current market price.

Frequently Asked Questions

What does Transaction Code A mean?

Transaction Code A indicates a grant or award of securities, typically stock options, RSUs, or other equity compensation as part of executive compensation.

Are Code A grants as significant as Code P purchases?

No, Code A grants are compensation awards and don't represent investment decisions like Code P purchases do. They're generally neutral signals.