Glossary
SEC Form 4 uses single-letter codes (P for open-market purchase, S for open-market sale, A for award) to classify how an insider acquired or disposed of shares.
When a corporate insider (an officer, director, or large shareholder) buys or sells company stock, they must report it to the SEC on Form 4, usually within two business days. Each transaction carries a single-letter code that says exactly how the shares changed hands.
The most common codes are P for an open-market purchase, S for an open-market sale, A for a grant or award of shares (often compensation), M for the exercise of a derivative such as an option, and F for shares withheld to cover taxes. The distinction matters: an open-market P is the insider spending their own money, while an A is a grant the company handed over.
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