Schedule G filings are designed to ease beneficial ownership requirements for which group?

• A. Active traders
• B. Passive investors
• C. Insiders
• D. Foreign investors

Answer: (B)

Cheating the burden of ownership reporting is what Schedule 13G is all about. It is the shorter filing used by those who own a significant stake but do not plan to influence or take control of the company—so-called passive investors. Because their intent is not to affect corporate policy or governance, the form requires less detail and is filed less frequently than the more comprehensive Schedule 13D. This is why passive investors—such as many large institutional holders—use Schedule 13G to meet beneficial ownership reporting requirements, while active traders or insiders would typically be reporting their holdings on Schedule 13D.