Every line of a Form 4 carries a one-letter transaction code that says what kind of transaction it was. The code matters more than the direction: most Form 4 lines are not decisions to buy or sell in the market.
The codes you will see most
| Code | Meaning |
|---|---|
| P | Purchase on the open market or in a private transaction |
| S | Sale on the open market or in a private transaction |
| A | Grant or award from the company, such as restricted stock or options given as pay |
| M | Exercise or conversion of a derivative, usually stock options, under an exempt company plan |
| F | Shares handed back to the company, or withheld, to pay an exercise price or the tax due when an award vests |
| G | Gift, given or received |
| D | Disposition to the company itself, other than F, under an exempt plan |
Other codes include C (conversion of a derivative), X (exercise of an option that is in or at the money), J (other, explained in a footnote) and W (acquired or disposed of by will). A separate V column marks a transaction reported voluntarily.
Two columns, two meanings of D
The form also has an "(A) or (D)" column, which says whether the securities were acquired or disposed of. That is not the same as code D. A sale is code S with D in that column; a gift given is code G with D in that column.
On Listed
Company pages list open-market transactions, codes P and S, marked "Purchase" and "Sale" in words. An option exercised (M) and sold the same day (S) appears as a sale, with both lines on the filing. Tax withholding (F) is not a sale decision, so it is not listed as one. The guide insider trades: what Form 4 tells you explains how to read them together.