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Schedule 13D vs 13G: 5% Ownership Filings Explained
Schedule 13D vs 13G explained: who must file at the 5% threshold, which holders qualify as passive, the 2024 deadlines and how to read an activist 13D.
On this page
- What is the difference between Schedule 13D and 13G?
- Schedule 13D and 13G filing deadlines
- Who can file a 13G instead of a 13D
- What 13D discloses that 13G does not
- How beneficial ownership is counted
- 13D groups and aggregated holdings
- Reading the filings in practice
- How 13D and 13G compare with 13F
- How to check a company on Signal8
- FAQ
What is the difference between Schedule 13D and 13G?
Schedule 13D and Schedule 13G are the SEC filings that disclose a stake above 5%. Anyone who acquires beneficial ownership of more than 5% of a class of a company's registered voting equity must tell the market, using the long 13D if they may seek influence or the short 13G if they are passive. In detail:
- Schedule 13D, the long form, for holders who may seek to influence or control the company. Activist funds, strategic acquirers and anyone planning a proxy fight file 13D.
- Schedule 13G, the short form, available only to holders who qualify as passive or fall into certain institutional or exempt categories.
The form choice is itself information. A 13D must describe the holder's purpose and plans, and the deadlines are shorter. A 13G is mostly a statement of the stake. The SEC shortened most of these deadlines in rules adopted in October 2023, with 13D changes effective February 5, 2024 and 13G deadline changes effective September 30, 2024.
Schedule 13D and 13G filing deadlines
| Filing | Who | Deadline |
|---|---|---|
| Initial 13D | Any holder crossing 5% with control intent, or not eligible for 13G | 5 business days after crossing 5% |
| 13D amendment | 13D filers after a material change | 2 business days after the change |
| Initial 13G | Qualified institutional investors (QIIs) and exempt investors | 45 days after the end of the calendar quarter in which they crossed 5% |
| Initial 13G | Passive investors | 5 business days after crossing 5% |
| 13G amendment | All 13G filers after a material change | 45 days after the end of the calendar quarter of the change |
| 13G amendment | QIIs crossing 10%, then each 5% change | 5 business days after the end of the month of the change |
| 13G amendment | Passive investors crossing 10%, then each 5% change | 2 business days after the change |
The filing cut-off on deadline day is 10 p.m. Eastern time. Before the 2023 amendments, an initial 13D had 10 calendar days and 13G deadlines ran from year end, so older filings in EDGAR reflect much slower timing.
Who can file a 13G instead of a 13D
There are three routes to the short form.
Qualified institutional investors
Registered broker-dealers, banks, insurance companies, registered investment companies and advisers, employee benefit plans and similar institutions, provided they acquired the shares in the ordinary course of business and not with the purpose or effect of changing or influencing control. Rule 13d-1(b).
Passive investors
Any holder that owns less than 20% and certifies it has no control purpose. Rule 13d-1(c). A passive investor that reaches 20%, or that develops a control purpose, must switch to 13D.
Exempt investors
Holders that crossed 5% without an "acquisition" in the regulatory sense, such as founders who held their stake before the company registered its shares. Rule 13d-1(d).
The line between passive and active is about intent and conduct. SEC staff guidance issued in February 2025 narrowed how much engagement with management a 13G filer can undertake, for example pressing specific governance demands tied to voting, before it may be viewed as seeking to influence control. A holder that crosses that line must move to 13D.
What 13D discloses that 13G does not
A 13D has items covering the holder's identity, the source and amount of funds used, and, most importantly, Item 4, Purpose of Transaction. Item 4 must describe any plans or proposals relating to, among other things, acquiring more shares, an extraordinary transaction such as a merger or tender offer, changes to the board (often pursued through a proxy contest), or changes to the company's capitalization or dividend policy. Item 6 discloses contracts and arrangements involving the company's securities, and Item 7 lists exhibits such as letters to the board or group agreements.
A 13G has no purpose item at all. It certifies the holder is not seeking control.
How beneficial ownership is counted
Beneficial ownership means voting or investment power, directly or indirectly. It includes shares the holder has the right to acquire within 60 days, such as through exercisable warrants or convertible notes. The percentage is calculated on a base that adds those acquirable shares to the shares outstanding.
This is why many small-cap financings include an ownership blocker (see how ownership blockers work): a contractual cap, usually 4.99% or 9.99%, that prevents the holder from exercising or converting into more than that percentage. When the instrument is not exercisable beyond the cap, the shares above the cap are generally not counted. Investors in pre-funded warrants often rely on a 4.99% or 9.99% blocker and file a 13G at the capped amount. The blocker limits what is counted for disclosure; it does not remove the underlying warrant overhang, because the holder can exercise, sell, and exercise again.
13D groups and aggregated holdings
Two or more holders who agree to act together for the purpose of acquiring, holding, voting or disposing of shares form a group, and their holdings are aggregated. Five holders at 1.5% each who coordinate are a 7.5% group and must file. The 2023 amendments clarified that a group can be formed without a written agreement.
Reading the filings in practice
- A new 13D on a small company often attaches a letter to the board. That letter states the holder's demands in plain language.
- A 13G converted to a 13D (a holder that previously filed 13G now files 13D) signals a change of stance. The holder must file within 5 business days of losing 13G eligibility and, under Rule 13d-1(e), may not vote or buy more shares until 10 days after filing the 13D.
- A 13G amendment showing 0% or "less than 5%" is an exit filing. It confirms the holder dropped below the threshold, not when or at what price.
- Section 16 also applies above 10%, so a holder crossing 10% typically starts filing Form 4 as well. See Form 4 codes.
How 13D and 13G compare with 13F
| 13D / 13G | 13F | |
|---|---|---|
| Trigger | More than 5% of a class | $100 million of 13(f) securities across a portfolio |
| Scope | One issuer | Every qualifying position |
| Speed | 2 to 5 business days (13D) | 45 days after quarter end |
| Includes warrants and convertibles | Yes, if acquirable within 60 days | Only listed instruments on the 13(f) list |
See Form 13F explained for the portfolio-level view.
How to check a company on Signal8
- The live SEC filings feed includes Schedule 13D filings in its material-events preset.
- The institutions page shows managers' 13F portfolios; the insiders and institutions guide explains how to read it.
- A company's filing history, including ownership schedules, is on its Filings tab, for example AAPL's filings.
FAQ
What is the difference between a 13D and a 13G?
Both disclose beneficial ownership above 5% of a class of voting equity. A Schedule 13D is the long form, required for holders who may seek to influence or control the company, and it must describe the holder's purpose and plans. A Schedule 13G is a short form available to qualified institutions, passive holders under 20% and certain exempt holders. 13D deadlines are also shorter.
How long does an investor have to file a Schedule 13D?
Five business days after crossing 5%, under the rules effective February 5, 2024. Amendments for material changes, including buying or selling 1% or more of the class, are due within two business days. Before 2024 the initial deadline was 10 calendar days, so older filings were slower.
Do warrants count toward the 5% ownership threshold?
Yes, if the holder can acquire the shares within 60 days, for example through warrants that are currently exercisable. The acquirable shares are added to both the holder's count and the share base. A contractual ownership blocker that prevents exercise above 4.99% or 9.99% generally limits what is counted, which is why many warrant holders report stakes just under those caps.
What does a 13G amendment showing less than 5% mean?
It means the holder has dropped below the 5% reporting threshold and is no longer required to file. It does not show when the shares were sold, at what price, or whether they were sold at all rather than diluted by new share issuance that enlarged the base.
See it on DilutionScan
Companies DilutionScan covers, with the instruments read from their SEC filings. Open one to see each instrument and the filing it came from.
- GNSGenius Group Limited8 warrant series, 1 convertible, 1 ATM program, 3 shelf registrations and 2 completed offerings on file
- SMXSMX (Security Matters) Public Limited Company Ordinary Shares10 warrant series, 8 convertibles, 2 equity lines, 4 shelf registrations, 4 S-1 registrations and 2 completed offerings on file
- MLGOMicroAlgo, Inc. Ordinary Shares2 warrant series, 5 convertibles and 2 shelf registrations on file
- HOLOMicroCloud Hologram Inc. Ordinary Shares2 warrant series, 1 convertible, 3 shelf registrations and 2 completed offerings on file
Terms in this guide
- Ownership blocker
- An ownership blocker is a clause that stops a holder from converting or exercising if doing so would push its beneficial ownership above a set limit, typically 4.99% or 9.99% of the common stock.
- Pre-funded warrant
- A pre-funded warrant is a warrant sold for almost the full share price up front, leaving a nominal exercise price such as $0.0001, so a buyer can stay under ownership limits until it exercises.
- Warrant overhang
- Warrant overhang is the block of shares that could be created if a company's outstanding warrants are exercised, potential dilution not yet in the shares outstanding figure.
Related guides
- Form 4 Transaction Codes Explained: P, S, A, M, FForm 4 transaction codes explained: what P, S, A, M, F, G and X mean, why code F is not an insider sale, the two-day filing deadline and 10b5-1 footnotes.
- Form 144 Explained: Notice of Proposed SaleForm 144 explained: who files a notice of proposed sale, the 5,000-share and $50,000 thresholds, Rule 144 volume limits, and why it does not prove a sale.
- 8-K Item Codes Explained: Items 1.01 to 9.018-K item codes explained: what Items 1.01, 2.03, 3.01, 3.02, 5.02 and 9.01 mean, the four-business-day rule, and the item combinations that flag a financing.
- 8-K vs 10-K: Event Report Within Four Business Days or the Audited Annual ReportAn 8-K reports one event within four business days; a 10-K is the audited, certified annual report. How they differ and how one event shows up in both.
- Form 6-K, 20-F and 40-F: Foreign Issuer FilingsForm 6-K, 20-F and 40-F explained: why foreign private issuers file 6-Ks instead of 8-Ks, when a 20-F is due, and how to read a 6-K with no item numbers.
- How to Read a 10-Q and 10-K: Five Sections FirstHow to read a 10-Q or 10-K on a small cap. The five sections that show cash runway, going concern doubt and potential dilution, plus filing deadlines.
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This guide is from the Signal8 Academy, the research team behind DilutionScan. Educational content only. DilutionScan and Signal8 are not broker-dealers or investment advisers, and nothing here is a recommendation to buy or sell any security.