Section 16 filings require which individuals to file transaction reports for insider trades?

• A. Independent auditors
• B. Executive officers, directors, and greater than 10% stockholders
• C. Market makers
• D. Underwriters

Answer: (B)

Section 16 filings focus on insiders who have significant control or influence in a company. Under Section 16(a) of the Securities Exchange Act, executive officers, directors, and beneficial owners owning more than 10% of a class of registered equity securities must file reports detailing their holdings and any changes. This creates a transparent record of insider activity, with Form 3 for initial ownership, Form 4 for subsequent changes (typically within two business days of the transaction), and Form 5 as an annual summary. Market makers, underwriters, or independent auditors aren’t automatically considered insiders unless they also meet the ownership or officer/director criteria, so they don’t have the same reporting obligation by virtue of their roles alone.