Form 3 is the first ownership report that insiders must file with the SEC. It discloses the securities they own—such as common stock, preferred shares, or certain derivatives—at the moment they take on an insider role. This filing is required for new officers, directors, and anyone who owns more than 10% of a company’s shares.
The purpose of Form 3 is transparency. Insiders have access to non-public information, so regulators require clear reporting of their holdings from the start. Once the Form 3 is filed, insiders must continue reporting changes to their ownership through Form 4 (for timely updates) and Form 5 (for annual summaries of any remaining changes).
Form 3 filings help investors understand who controls a significant portion of the company. They also act as a baseline for tracking future insider activity, such as buying or selling shares. These filings are part of the broader SEC rules designed to prevent unfair advantages and ensure trust in public markets.
Form 3 establishes the initial ownership position of company insiders. It supports transparency and allows investors to monitor insider behavior over time.
Form 3 must be filed by officers, directors, and shareholders who own more than 10% of a public company. These individuals are considered insiders, meaning they may have access to sensitive information. The filing must be submitted within 10 days of becoming an insider. If ownership changes later, those updates must be reported on Form 4 or Form 5.
Form 3 lists all beneficial ownership, including directly owned shares, indirectly owned shares, and certain types of derivative securities. It shows the number of shares held and describes the type of ownership. This baseline helps the SEC and investors compare future filings and identify meaningful changes in insider positions.
Investors examine Form 3 to understand how much stock insiders hold when they join the company or gain insider status. Higher insider ownership can signal confidence in the company’s future. Analysts also use Form 3 to track new insiders before monitoring ongoing activity through subsequent Form 4 filings.
A new CFO joins a public company and is required to file Form 3 within 10 days. The filing shows how many shares the CFO owns at the start of their role. Investors use this information to compare future insider purchases or sales.
FinFeedAPI’s SEC API provides access to Form 3 filings, helping users track insider ownership disclosures and integrate insider data into research dashboards or monitoring tools.
