code-p

Open-market purchase

High signal

Definition

Code P is a non-derivative open-market purchase of company stock by the reporting owner. We treat it as a high-signal transaction because it is the strongest filing-side evidence of insider conviction.

Form 4 code P explained

Keyword focus: form 4 code p

Form 4 code P reports a purchase of securities, typically an open-market purchase of common stock. Among Form 4 codes, P is usually the cleanest buying signal because the insider is acquiring shares rather than receiving compensation stock.

The strongest code P context combines a meaningful dollar value, a relevant insider role, direct ownership, and nearby purchases by other reporting owners. That is why many filing-only signal pages start from code P rows.

  • Used for insider buying screens and cluster-buying rules.
  • Check whether the transaction is direct or indirect ownership.
  • Compare purchase size with the insider's past transactions.
  • Still verify price, shares, and footnotes in the original SEC filing.

How to read this term

Practical filing context for this specific glossary entry

Usually discretionary

Code P is the cleanest open-market purchase code: the insider bought shares in the market rather than receiving compensation stock.

Check size and role

A director purchase and a CEO purchase can carry different context; compare dollar value, post-transaction holdings, and whether other insiders bought nearby.

Still not a forecast

A purchase can be meaningful filing evidence, but it does not predict future returns or replace reading the original Form 4 footnotes.