Schedule 13D: What It Is, How to File, Requirements, Example

Schedule 13D is a form that must be filed with the Securities and Exchange Commission (SEC) by any person or group of persons who acquires beneficial ownership of more than 5% of a class of equity securities of a publicly traded company. The purpose of Schedule 13D is to provide investors with information about who owns a company's stock and what their intentions are for the company.

Schedule 13D must be filed within 10 days of the date on which the person or group of persons acquires beneficial ownership of more than 5% of a class of equity securities. The form must include the following information:

• The name and address of the person or group of persons filing the form
• The number of shares of each class of equity securities owned by the person or group of persons
• The source of the funds used to acquire the securities
• The person or group of persons' intentions for the company

If the person or group of persons' intentions for the company are to acquire control of the company, they must also disclose the following information:

• The person or group of persons' plans for the company
• The person or group of persons' ability to finance the acquisition
• The person or group of persons' intentions with respect to the company's employees, customers, suppliers, and competitors

Schedule 13D is an important disclosure document that provides investors with information about who owns a company's stock and what their intentions are for the company. By filing Schedule 13D, persons and groups of persons who acquire beneficial ownership of more than 5% of a class of equity securities of a publicly traded company are providing investors with the information they need to make informed investment decisions.

Here is an example of a Schedule 13D filing:

In January 2023, Carl Icahn acquired a 10% stake in Apple Inc. He filed a Schedule 13D with the SEC on January 25, 2023, disclosing his ownership stake and his intentions for the company. Icahn said that he intended to be a long-term investor in Apple and that he believed the company was undervalued. He also said that he would be looking for ways to improve the company's performance.

Icahn's Schedule 13D filing was met with mixed reactions from investors. Some investors were pleased that Icahn was taking an interest in Apple, while others were concerned that he would try to take control of the company. Ultimately, Icahn's investment in Apple had a positive impact on the company's stock price.