An annual summary of insider transactions that were not reported on Form 4.
Definition
Form 5 is an annual filing required by the SEC for corporate insiders to report any transactions that should have been reported earlier on a Form 4 but were delayed, as well as certain small transactions exempt from immediate Form 4 reporting.
Why it matters for Whale Tracking
While Form 4 provides the real-time tape, Form 5 is crucial for data integrity and reconciliation. It ensures that annual portfolio balances for executives are perfectly accurate, capturing gifts, minor transfers, and clerical corrections.
Real-World Example
"If a board member at Microsoft (MSFT) transfers shares to a family trust and forgets to file a Form 4, they must declare this transaction on a Form 5 within 45 days after the end of the company's fiscal year."