InsidersTradesSigma
Insider Trading & Regulation
The part of the US Securities Exchange Act of 1934 governing the reporting and trading obligations of corporate insiders in registered equity securities.
Section 16 applies to a company's officers, directors, and beneficial owners of more than 10% of a registered equity class. It has three limbs: 16(a) mandates the disclosure forms (Forms 3, 4 and 5), 16(b) is the short-swing profit rule that disgorges gains on round-trip trades within six months, and 16(c) prohibits insiders from short-selling their own company's stock.