Open-Market Buys vs Option Exercises

Code P: Open-Market Purchases

When an insider files a transaction with code P, they have actively chosen to purchase shares on the open market with their own money, at the current market price. This is a discretionary open-market purchase. Form 4 records the purchase, not the reason for it.

Code M: Option Exercises

Code M transactions are option exercises — the insider is converting previously granted stock options into shares. This is a compensation event, not an open-market purchase. The insider may immediately sell the acquired shares (a cashless exercise) to realize the option value.

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