How many days do insiders have to register with the SEC and file any changes of status?

How many days do insiders have to register with the SEC and file any changes of status?

• A. 1 day
• B. 2 days
• C. 5 days
• D. 10 days

Answer: (B)

Insiders, such as executives and significant shareholders of a company, are required to notify the Securities and Exchange Commission (SEC) about their ownership and any changes in their status. The correct timeframe for them to register and file these changes is within 2 business days of the transaction or status change. This regulation aims to promote transparency in the market and to ensure that investors have access to timely information regarding insider trades that might influence a company's stock price. Therefore, the requirement for insiders to file changes within 2 days helps to maintain an open and fair trading environment, safeguarding the interests of all market participants.

Insiders, such as executives and significant shareholders of a company, are required to notify the Securities and Exchange Commission (SEC) about their ownership and any changes in their status. The correct timeframe for them to register and file these changes is within 2 business days of the transaction or status change. This regulation aims to promote transparency in the market and to ensure that investors have access to timely information regarding insider trades that might influence a company's stock price. Therefore, the requirement for insiders to file changes within 2 days helps to maintain an open and fair trading environment, safeguarding the interests of all market participants.