Preliminary Information for Stock Option Filings
| Transactions Required |
When an insider is granted stock options or exercises stock options transactions are required to be filed.
An exercise of options requires two transactions: one for the exercise of the options (disposition) and one for the acquisition of the underlying security. If the underlying security was subsequently sold, then a third transaction would be required. |
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| Requirement |
You need to file the grant of options within 10 calendar days of the date you legally acquire ownership of a specific number of options, ie. the date indicated as the date of grant or if no date is given, the date you are notified of your specific allotment.
If the grant is subject to exchange approval then the date of the grant can be no earlier than the date exchange approval is granted.
The date the board of directors authorizes the grant of options is NOT the date from which you calculate your requirement to report your grant.
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| Filing Process for a grant of options |
A grant of options is recorded in the same manner as other transaction with the following exceptions:
- use Nature Code 50
- after entering the number or value of securities acquired you are required directly below that to enter the number or value of underlying securities. If the options are exercisable on a 1:1 basis, the same number would be entered.
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| Filing Process for an Exercise of Options |
An exercise of options requires two transactions:
- one to record the disposition of the options, and
- one to record the acquisition of the underlying security
- use Nature Code 51 for both transactions
- after entering the number or value of securities disposed of you are required to directly below that enter the number or value of underlying securities. If the options are exercisable on a 1:1 basis, the same number would be entered
Note: If the underlying security was subsequently sold, the insider must file a separate transaction using the appropriate nature code that describes how the sale was executed. |
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Instructions for Filing an Insider Report
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See Insider Report for Stock Options |
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