---
title: "SEC Form 4 Transaction Codes Explained (P, S, A, M, F, G and More)"
description: "What SEC Form 4 codes P, S, A, F, M and the rarer ones mean, with examples that keep the code apart from the acquired/disposed and ownership columns."
canonical: https://insideralpha.ai/learn/form-4-transaction-codes
date_published: 2026-07-21
date_updated: 2026-09-23
publisher: InsiderAlpha (https://insideralpha.ai)
---

Canonical URL: https://insideralpha.ai/learn/form-4-transaction-codes
Published 2026-07-21. Updated 2026-09-23.

# Form 4 transaction codes: read the letter in the right column

The transaction code describes the reported event. It does not describe the insider's motive, and it is not the same as the acquisition/disposition flag or direct/indirect ownership code. Use [SEC Form 4 Instruction 8](https://www.sec.gov/about/forms/form4.pdf) as the reference, then read the table, security title and footnotes attached to the row.

## The purchase, sale and compensation codes

| Code | Meaning | Reading check |
| --- | --- | --- |
| P | Open-market or private purchase, including non-derivative or derivative securities | Check the table and security; P is broader than common-stock exchange buying |
| S | Open-market or private sale, including non-derivative or derivative securities | Read price, ownership and plan footnotes before interpreting timing |
| A | Grant, award or other acquisition under Rule 16b-3(d) | An acquisition under this code is not a P purchase |
| D | Disposition to the issuer under Rule 16b-3(e) | Do not confuse the transaction code with a D in another column |
| F | Delivery or withholding of securities for an exercise price or tax liability under Rule 16b-3 | Footnotes identify the obligation; F is not an open-market sale |
| I | Discretionary transaction under Rule 16b-3(f) | This defined transaction category is not the indirect-ownership flag or a 10b5-1 designation |
| M | Exercise or conversion exempt under Rule 16b-3 | Link derivative and underlying-security rows before counting shares |

## Other derivative, transfer and reporting codes

| Code | Meaning |
| --- | --- |
| C | Conversion of a derivative outside the Rule 16b-3 exempt category above |
| E | Expiration of a short derivative position |
| H | Expiration or cancellation of a long derivative position with value received |
| O | Exercise of an out-of-the-money derivative |
| X | Exercise of an at-the-money or in-the-money derivative |
| G | Bona fide gift |
| L | Small acquisition under Rule 16a-6 |
| W | Acquisition or disposition through a will or inheritance law |
| Z | Deposit into or withdrawal from a voting trust |
| J | Other acquisition or disposition; the transaction must be explained |
| K | Equity swap or similar instrument; used in addition to the applicable transaction code |
| U | Share tender disposition in a change-of-control transaction |
| V | Voluntary early reporting, indicated in its separate column |

The derivative codes C, E, H, O and X above are the instruction's category for transactions other than those exempt under Rule 16b-3. K supplements the economic code, as in P/K or S/K. V describes reporting timing rather than a stand-alone purchase or sale. Keep these extra indicators if you export the filing to a spreadsheet.

## Three different uses of A, D and I

**Transaction A** is an award or other specified acquisition. **A beside the amount** means the security was acquired, regardless of whether the transaction code is P, A or M. A P row with an A flag is still a purchase; it has not become an award.

**Transaction D** describes a specified disposition to the issuer. **D beside the amount** means disposed of, while **D in the ownership column** means direct ownership. Similarly, transaction I and ownership I have different meanings. Copy column labels along with values when taking notes; isolated letters lose their meaning.

## A small example that catches a big classification error

**Hypothetical rows:** common stock, code A, amount 4,000, acquired A, price explained in a grant footnote; followed by common stock, code F, amount 1,200, disposed D, with a tax-withholding footnote. The net change from those two rows is 2,800 shares on the same ownership basis. There is no P purchase in this example, even though the insider owns more shares afterward.

Now replace the first row with P and a $20 cash price. The classification changes. The buyer's motive and plan status are still unknown. Read the [plan disclosure](https://insideralpha.ai/learn/rule-10b5-1) separately; an absent plan marker cannot supply proof of discretionary timing.

## The code is where the reading starts

Follow [the real Form 4 walkthrough](https://insideralpha.ai/learn/how-to-read-a-form-4) to see the columns together. For paired exercises and settlements, use [the derivative guide](https://insideralpha.ai/learn/open-market-vs-derivative-transactions). Practice on a document in [recent filings](https://insideralpha.ai/filings), retaining the accession and footnotes alongside the code so the classification can be checked or revised if an amendment arrives.

*This article is informational and is not investment advice.*