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SEC Form 4 transaction code

Form 4 Code M: Option Exercise or Conversion

Code M marks the exercise or conversion of a derivative security, such as a stock option or restricted stock unit, that is exempt under Rule 16b-3, typically an award from the company’s own equity plans.

“Exercise or conversion of derivative security exempted pursuant to Rule 16b-3”
SEC Form 4, General Instruction 8 (Transaction Codes), under “Rule 16b-3 Transaction Codes”. Form 4 and instructions (PDF, sec.gov)

How often code M appears in real filings

Share of transaction rows
21.2%
10,617 of 50,023 rows, 2nd most common
Filings with a code M row
16.9%
3,389 of 20,089 filings
Companies
793
of 2,099 in the sample
Median days, trade to filing
2
calendar days

5,101 of the rows are in Table I (non-derivative securities) and 5,516 in Table II (derivative securities).

Sample: 50,023 transaction rows in 20,089 Form 4 and 4/A filings filed Jul 23 – Oct 21, 2026 by insiders of 2,099 companies with an AlphaScala stock page. Rows are counted as filed; see how the codes are counted.

SEC Form 4 filings as of Oct 21, 2026

Reading code M on a Form 4

One exercise usually fills two rows. General Instruction 4(c) says to "report the exercise or conversion of a derivative security in Table II (as a disposition of the derivative security)" and to report the underlying shares in Table I, and filers usually add a Table I M row for the shares received. That is why M rows split between the two tables in the statistics on this page.

An M row on its own is neither a purchase nor a sale. Many filings pair it with code S rows on the same day, an exercise-and-sell, or with code F rows, where shares are withheld to pay the exercise price or tax. Reading the whole filing shows how many of the new shares the insider kept.

The price on a Table I M row is normally the exercise price, not a market price, and restricted stock units convert at $0. Shares multiplied by that price is not a market value.

Code M in real filings

Recent Form 4 lines coded M, chosen from the newest filings in the sample, one company each. Figures are as filed; each links to the filing on sec.gov.

SNOWSnowflake Inc.

Filing on sec.gov
Insider
Slootman Frank, Director
Transaction date
Oct 19, 2026
Filed
Oct 21, 2026
Table
I, non-derivative
Shares
300,000
Price
$8.88
Shares × price
$2.7M
Held after
319,024 (direct)
  • Slootman Frank (Director) acquired 300,000 shares by exercising or converting a derivative security at $8.88 per share.
  • Shares held after the transaction: 319,024, held directly.
  • The Rule 10b5-1 box is checked on this filing: a transaction on it was made under a plan intended to meet Rule 10b5-1(c).
  • The same filing also reports 10 code S rows (300,000 shares) and 1 code M row (300,000 derivative securities).
  • Filed 2 days after the transaction date.

QXOQXO, Inc.

Filing on sec.gov
Insider
West Kenneth J, President and COO
Transaction date
Oct 15, 2026
Filed
Oct 19, 2026
Table
I, non-derivative
Shares
218,531
Price
$0.00
Shares × price
–
Held after
218,531 (direct)
  • West Kenneth J (President and COO) acquired 218,531 shares by exercising or converting a derivative security, at a reported price of $0.
  • Shares held after the transaction: 218,531, held directly.
  • The same filing also reports 1 code F row (99,256 shares) and 1 code M row (218,531 derivative securities).
  • Filed 4 days after the transaction date.

TVTXTravere Therapeutics, Inc.

Filing on sec.gov
Insider
Dube Eric M, CHIEF EXECUTIVE OFFICER
Transaction date
Oct 15, 2026
Filed
Oct 19, 2026
Table
II, derivative
Units
200,000
Price
$0.00
Shares × price
–
Held after
160,000 (direct)
  • Dube Eric M (CHIEF EXECUTIVE OFFICER) exercised or converted 200,000 derivative securities; this is the Table II side of the exercise.
  • Derivative securities of this kind held after the transaction: 160,000, held directly.
  • The Rule 10b5-1 box is checked on this filing: a transaction on it was made under a plan intended to meet Rule 10b5-1(c).
  • The same filing also reports 3 code M rows (287,470 shares and derivative securities) and 3 code S rows (243,735 shares).
  • Filed 4 days after the transaction date.

Codes read alongside M

Questions about these codes

How common is code M on Form 4?

In AlphaScala’s sample of 50,023 Form 4 transaction rows filed Jul 23 – Oct 21, 2026, code M made up 21.2% of rows (10,617) and appeared on 16.9% of filings (3,389 of 20,089). It was the 2nd most common of the 16 codes found.

What is the difference between code M and code X?

Both are exercises. M is an "exercise or conversion of derivative security exempted pursuant to Rule 16b-3", which covers options and units from the company’s own plans. X is an "exercise of in-the-money or at-the-money derivative security" outside Rule 16b-3, for example warrants or options acquired some other way. Out-of-the-money exercises outside Rule 16b-3 are code O.

Does code M mean the insider sold shares?

No. M records the exercise or conversion. A sale of the shares received is reported separately with code S, often on the same Form 4, and shares withheld to pay the exercise price or tax are code F.

Why does a code M row show a price of $0?

Restricted stock units have no exercise price, so their conversion into shares is reported at $0. For stock options the price is the exercise price set when the option was granted.

Definition: SEC Form 4, General Instruction 8 (sec.gov). Examples and counts: AlphaScala's copy of SEC EDGAR Form 4 filings. See all 20 Form 4 transaction codes, insider cluster buys and our methodology.

Educational reference only, not investment advice. Insider transactions have many motives and a Form 4 does not record them. See our risk disclaimer.