Code P
Open-Market Purchase
The insider voluntarily bought shares on the open market using personal capital. This is the highest-conviction insider signal — it represents real money at risk with no automatic or scheduled trigger.
High bullish signal
Code P is the cleanest insider buying signal because the insider voluntarily bought shares with personal capital in the open market.
How to read Code P
- Start by confirming whether the transaction appears in Table I or Table II.
- Compare the transaction value against the insider's remaining ownership.
- Read footnotes for 10b5-1 plans, tax withholding, trusts, gifts, or issuer-directed actions.
- Do not mix compensation mechanics with voluntary open-market buying or selling.
Form 4 Code P — FAQ
>What does Form 4 Code P mean?
Form 4 Code P means Open-Market Purchase. The exact investment signal depends on whether the transaction is voluntary, mechanical, compensation-related, or disclosed with additional footnotes.
>Is Form 4 Code P bullish or bearish?
Code P is the cleanest insider buying signal because the insider voluntarily bought shares with personal capital in the open market.
>How should investors use Code P in insider trading analysis?
Investors should compare the code against transaction value, remaining ownership, insider rank, timing, and related transactions before assigning sentiment.