What is Form 4 securities?
What's a Form 4? In most cases, when an insider executes a transaction, he or she must file a Form 4. With this form filing, the public is made aware of the insider's various transactions in company securities, including the amount purchased or sold and the price per share.
Form 4 is a US Securities and Exchange Commission (SEC) filing related to insider transactions. Officially known as Form 4: Statement of Changes in Beneficial Ownership, Form 4 needs to be completed and filed with the SEC whenever a company 'insider' in the US buys or sells shares in their own company.
Form 4 must be filed with the Securities and Exchange Commission whenever there is a material change in the holdings of company insiders. If a party fails to disclose required information on a Form 4, civil or criminal actions could result.
As the SEC states, the primary purpose for the form is to provide information about transactions involving directors, officers, and beneficial owners of stock amounting to 10% or more of outstanding shares in companies that are registered with the regulatory body.
Form S-4 is the registration statement that the Securities and Exchange Commission (SEC) requires reporting companies to file in order to publicly offer new securities pursuant to a merger or acquisition.
The Form 4 is used anytime an NFA Firearm is transferred to a non-FFL – it is used to pay the transfer tax as well as apply for permission to possess the NFA Firearm. When approved, it is returned from the ATF with a tax stamp.
The ATF Form 4 is one of the most common forms that NFA firearms and silencer buyers will encounter. It's the form that has to be filled out to transfer an NFA item from the owner to the buyer. Oftentimes, this will be a dealer selling to a customer.
In most cases, when an insider executes a transaction, he or she must file a Form 4. With this form filing, the public is made aware of the insider's various transactions in company securities, including the amount purchased or sold and the price per share.
Form 4 is required to be filed within 30 days of any change in the constitution of the LLP, such as the appointment of a new partner, the resignation of a partner, or a change in the name, address, or designation of a partner.
Generally, a Form 4 must be filed within two business days of the change in beneficial ownership.
How much is a Form 4?
| Form | Use | Fee |
|---|---|---|
| Form 4 | Application for Tax Paid Transfer and Registration of a Firearm | $200 or $5 |
| Form 5 | Application for Tax-Exempt Transfer and Registration of a Firearm | Tax Exempt |
| Form 9 | Application and Permit for Permanent Exportation of a Firearm | None if proof of exportation is provided |
Form 4 filings include information about the insider, their relationship to the company and its securities, the type of transaction that occurred, and the amount and type of securities involved. A failure to file Form 4 timely must be reported in proxy statements or 10-Ks and can lead to fines.
For example, an insider may sell a large number of shares to fund the purchase of a new home, to pay for a child's college education, or, perhaps most frequently, to diversify his personal holdings.
If the issuer is already registered under Section 12, the insider must file a Form 3 within ten days of becoming an officer, director, or beneficial owner. Changes in ownership are reported on Form 4 and must be reported to the SEC within two business days.
Review Period
It is the responsibility of the SEC to review the registration statement as per the Form S-4 checklist and verify whether it complies with the rules and regulations of security laws. Once the form is submitted for review, it is generally seen that comments are provided within 27 business days of filling.
SEC Form S-1 is the initial registration form the Securities and Exchange Commission (SEC) requires public companies to fill out if they want to list their shares on a national exchange.
| ATF Form | Paper | |
|---|---|---|
| Form 4 Individual | Application for Tax Paid Transfer and Registration of Firearm | 245 days |
| Form 5 | Application for Tax-Exempt Transfer and Registration of Firearm | 19 days |
| Form 6 | Application and Permit for Importation of Firearms, Ammunition and Implements of War | 6 weeks |
The term “Firearm Silencer” or “Firearm Muffler” means any device for silencing, muffling, or diminishing the report of a portable firearm, including any combination of parts, designed or redesigned, and intended for the use in assembling or fabricating a firearm silencer or firearm muffler, any part intended only for ...
NFA or ATF wait times are influenced by a number of variables that can increase the wait times, including filing method, ATF staffing, volume of applications, and your personal information. Our ATF Form 4 wait time tracker shows eForms being almost twice as fast as paper applications currently.
Form 4 is filed by a current qualified federal firearms licensee (FFL) registrant to transfer an NFA weapon to an individual or other entity (non-licensee).
What is the difference between Form 1 and Form 4?
Use ATF Form 1 if you want to make your own NFA item. Use ATF Form 3 if you're an FFL dealer transferring your NFA item to another FFL or government agency. Use ATF Form 4 if you're a private citizen taking ownership of an NFA item in the form of an individual registration, gun trust, or corporation.
NFA Wait Times
The ATF has stated that their goal is to get eForm 4s approved within 90 days. Unfortunately, they haven't hit that goal just yet. As of the time of this writing, eForm 4 submissions are taking approximately 270 days, while paper Form 4 submissions are taking 14 months or more.
If you want to buy a suppressor, fully-automatic gun, machine gun, short barreled shotgun, short barreled rifle, any other weapon (AOW, a specific legal term), or a destructive device, then you'll need to fill out a form 4.
Dividend stocks are considered safer than high-growth stocks, because they pay cash dividends, helping to limit their volatility but not eliminating it. So dividend stocks will fluctuate with the market but may not fall as far when the market is depressed.
The transaction code "M" on a SEC Form 4 filing indicates that the transaction was a "gift" or a "transfer" of securities. This means that the securities were transferred to the recipient without any payment or compensation in return.
References
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