What is Schedule 13-D?
A beneficial ownership report, known as SEC Schedule 13-D, is a public notice of anyone who has acquired 5% or more of a voting class of a company'ssecurities.
How Does Schedule 13-D Work?
For example, let's say you really like Company XYZ common stock.. In fact, you like it so much that you start buying and buying and buying . Pretty soon, you own 5% of the company's
Because Company XYZ is a public company, you must file a Form 13-D with the SEC within 10 days of the transaction that brought your position to the 5% threshold. You must disclose your name, other identifying information and the names of anyone else who has the power to vote the or sell the .
Why Does Schedule 13-D Matter?
The idea behind a Schedule 13-D is to inform the company and the public that a large shareholder exists and that other people (the shareholder's wife, for example) have the power to vote thoseor sell those as he or she sees fit.