How to read SEC Form 4
Form 4 reports changes in beneficial ownership by US reporting insiders, including directors, officers and certain shareholders holding more than 10%. It records a disclosure, not a recommendation.
Reviewed by InsiderLens on October 28, 2026.
Separate the transaction from the disclosure
The transaction date tells you when the trade occurred. The filing date tells you when it was reported. Most Form 4 transactions must be reported within two business days, with exceptions. A filing can therefore describe an earlier trade.
Table I covers non-derivative securities. Table II covers derivatives, such as options. Check which table contains the transaction before comparing amounts.
Common transaction codes
- P
- A purchase on an exchange or through a private transaction. Can apply to either securities table.
- S
- A sale on an exchange or through a private transaction.
- A
- An award, grant or other acquisition from the company.
- M
- An exercise or conversion of a derivative security.
- F
- Securities used to cover an exercise price or tax obligation.
- G
- A gift of securities.
Code P alone does not prove an exchange purchase of common shares. InsiderLens’s recent purchases page also excludes derivatives.
A real Form 4, read one row at a time
Tesla’s Form 4 was filed on 15 September 2025 for trades on 12 September. Check the filing date on EDGAR.
One Table I row reports 22,537 shares, code P, at $371.90. That row represents about $8.38 million, not the filing total.
Footnote 1 explains that the price is a weighted average. Ownership is indirect through a trust.
Several rows belong to one reporting person. Count people before calling anything a buying cluster.
Open the Form 4 and its footnotesRead the context, not just the code
Check the security title, price, quantity, direct or indirect ownership, holdings after the transaction and footnotes. Also check whether the filing is an amendment or identifies a Rule 10b5-1 plan.
For research on InsiderLens, open the source link from a transaction row. Compare the filing date with the return starting date before interpreting historical results. Neither one purchase nor a cluster guarantees future performance.