How to Report Insider Trading


How to Report Insider Trading. The Security Exchange Commission's (SEC) Securities Exchange Act of 1934 stipulates in Section 12 that an insider must file a statement of ownership when owning more than 10 percent of the company's equity securities. Illegal insider trading occurs when someone trades from information that's confidential and non-public.

File Form 3

File form 3, the "Initial Statement of Beneficial Ownership of Securities" with the SEC when your holdings cross the 10 percent threshold.

Look at the date on the registration form. A first-time filer submits this form in compliance with the date on the registration. A person already registered files within 10 days.

Go to the EDGAR system at the SEC website.

Choose "More" from "Filings & Forms (EDGAR)."

Select and click "Information for EDGAR filers."

Find "Form ID and Other EDGAR Forms" and click it.

Scroll down to "Insiders (Officers, Directors & Significant Shareholders)" and choose from form number 3, 4 or 5.

File Form 4

File the "Statement of Changes in Beneficial Ownership" at the EDGAR system when possession of equities legally change.

Remember to report the change within two business days.

Repeat Steps 3 to 7 in Section 1.

File Form 5

File the "Annual Statement of Changes in Beneficial Ownership of Securities."

Report transactions not reported in the past on Form 4 or deemed deferred.

Repeat Steps 3 to 7 in Section 1.

File Illegal Insider Trading

Go to the SEC homepage website.

Find "Investor Information," and then click "File a Tip or Complaint."

Choose the "online forms" for filing an electronic complaint.

Send an email to report possible trading violations by clicking the address in "Tips."

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