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Finance Dictionary and Glossary of Investment Terms
A form that must be filed with the Securities and Exchange Commission whenever an investor acquires 5 percent of any public company. These filings are closely watched, since they can signal a takeover or change of ownership. At the very least, the implication is that someone who owns this much stock could influence the board''s decisions. Because of the 5 percent rule, financiers sometimes stop at 4.9 percent to avoid giving away their identity and driving up prices.