How does TrimTabs estimate insider selling?
The Securities and Exchange Commission (SEC) requires major insiders officers, directors, and major shareholders to file Form 4 within 48 hours of when they buy shares, sell shares, or exercise stock options. The SEC also requires other major insiders including some who are not required to file Form 4 to file Form 144 to report their intentions to sell restricted shares that have never been included in a public offering. Thomson Financial tracks Form 144 filings on a daily basis. Most insiders are not required to file Form 4 or Form 144 when they sell shares because their holdings were included in a blanket share registration as part of an options program or a public offering. Since there is no way to track insider selling by insiders who are smaller holders, we double Form 144 filings to estimate insider selling by all insiders.
