What is the difference between SEC Form 3 and Form 4? Form 3 must also be filed within ten days after a person's holdings exceed 10% of any class of the company's registered equity securities. Form 4 is used for the required reporting of changes in company stock ownership.
The insider might buy because they see great potential, the possibility for merger or acquisition in the future, or simply because they think their stock is undervalued.
What Investors Can Learn From Insider Trading - Investopedia
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