Under the rules of Section 16(a) of the Securities Exchange Act of 1934, Form 3 is the initial form filed with the SEC, the issuing company, and the relevant stock exchange by company directors and officers, and by any company shareholders who own 10% or more of the company’s stock. Form 3 details the direct and indirect holdings of company stock as well as the number of options, warrants, rights, and convertible stock or bonds. Form 3 must be filed within 10 calendar days after a person becomes a Section 16 insider, whether or not the insider owns any shares. Compare to Form 4 and Form 5.
For details about these filings in the context of NQDC plans, see a related FAQ.