Can I learn about insiders' purchases and sales of company securities?
The Exchange Act requires a company's directors and officers, as well as shareholders who own more than 10% of a class equity securities registered under the Exchange Act, to report their transactions involving the company's equity securities to the SEC. It also establishes mechanisms for a company to recover "short swing" profits, those profits an insider realizes from a purchase and sale of a company security within a six-month period. In addition, the Exchange Act prohibits short selling by these persons of any class of the company's securities.
Share ownership among directors and key officers of many companies also must be shown in their company's proxy statement.
Persons who acquire more than five percent of the outstanding shares of a class of stock in most publicly held companies must file beneficial owner reports until their holdings drop below five percent. These filings contain information about the owners as well as their investment intentions, providing investors and the company with information about accumulations of securities that may potentially change or influence company management and policies.
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