Form 4 transaction codes

The codes

A Form 4 is the report a company insider files after their shares change hands. Each line on the form gets a one-letter code that says what kind of event it was:

P: they bought shares, on the stock market or in a private deal.

S: they sold shares, on the stock market or in a private deal.

A: the company gave them shares, often as part of their pay.

M: they used a stock option to get shares.

F: the company kept some of their shares to cover taxes or the cost of an option.

G: they gave shares away as a gift.

D: they sold shares back to the company.

C: they converted one kind of security into another.

X: they used a stock option that was worth using.

J: something else, with a note that explains it.

A second column shows whether shares came in (A, for acquired) or went out (D, for disposed).

What Paydirt shows

Paydirt shows only two kinds of lines: a P where shares came in, and an S where shares went out. These are the times an insider chose to spend their own money, or take money out, at the market price.

Paydirt leaves out gifts, pay in shares, option use and shares kept for taxes. None of those is a choice to buy or sell at the market price. If they were counted, they would bury the trades people actually want to see. If a line's code and direction do not match, like a P marked as shares going out, Paydirt drops it instead of guessing.

Reading the original

One Form 4 often has several codes on the same day. For example, an insider might use options (M), have some shares kept for taxes (F), and then sell the rest (S). Paydirt shows the sale. The full filing on SEC EDGAR, linked from every row, shows everything else. The Form 4 guide explains what each row on Paydirt shows.