How long do insiders have to report their trades to the SEC?

Insiders are required to report their trades to the Securities and Exchange Commission (SEC) within three business days. This requirement is part of the SEC's effort to promote transparency in the securities markets and ensure that investors have access to timely and accurate information regarding insider trading activities. Timely reporting allows for the public to be informed about potential insider trading, which can impact stock prices and market integrity.

The three-day timeframe allows insiders a reasonable period to reflect on their trading decisions while still maintaining accountability to the public and regulatory bodies. Adhering to this timeline is crucial for maintaining compliance with federal securities laws.