Question 1

Is insider buying a bullish signal?

Accepted Answer

Generally yes, especially when multiple insiders buy with their own money around the same time (cluster buying). Insiders have the best information about their company's prospects. However, not all insider purchases are equal — look for open market purchases, not option exercises or automatic plan trades.

Question 2

What is the difference between Form 4 and Form 3?

Accepted Answer

Form 3 is the initial statement of ownership filed when someone becomes an insider. Form 4 reports changes in ownership (buys and sells). Form 5 is an annual summary of transactions that should have been reported on Form 4 but weren't filed on time.

Question 3

How quickly must Form 4 be filed?

Accepted Answer

Within 2 business days of the transaction. This fast reporting requirement means insider trading data is nearly real-time. All Seeing Eye tracks Form 4 filings and surfaces them on each stock's page as they're filed.

What Is SEC Form 4? How to Track Insider Buying and Selling

See It in Action

Frequently Asked Questions

Related Concepts