Today, after the closing bell, investor Carl Icahn cut his share in Netflix in half — from 4.5% from 9.98%, according to a 13D filing
And now that he's done that, he'll never have to let us know when he's cutting his stake in controversial stock again.
That's because with l ess than 5% ownership, Icahn ceases to be a "beneficial owner" of the stock, so he he's exempt from disclosure , according to SEC rules.
When a person or group of persons acquires beneficial ownership of more than 5% of a voting class of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934, they are required to file a Schedule 13D with the SEC. (Depending upon the facts and circumstances, the person or group of persons may be eligible to file the more abbreviated Schedule 13G in lieu of Schedule 13D.)
Schedule 13D reports the acquisition and other information within ten days after the purchase. The schedule is filed with the SEC and is provided to the company that issued the securities and each exchange where the security is traded. Any material changes in the facts contained in the schedule require a prompt amendment. The schedule is often filed in connection with a tender offer.
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- Carl Icahn