Ownership disclosure (the 5% rule)
In the US, anyone who comes to own more than 5% of a company's voting shares must disclose it publicly, with their intentions, within days.
🌍 In the real world
The rule comes from the Williams Act of 1968. Investors who may try to influence the company file a Schedule 13D; passive investors can file the shorter Schedule 13G.
Disclosure tells other shareholders when someone is building a big stake, which may signal a takeover attempt or a push for change.
🎮 In Journey Shares
When any player's holding crosses 10% of a listing's pool, and each 5 points above that, it's announced publicly in whale alerts. →
🧭 How to use it
Follow whale alerts to see who's building a big stake. A whale can move a price a lot when they sell, so a listing with a large holder carries extra risk.
🎮 Learn Ownership disclosure (the 5% rule) the fun way
Try it in a live 3D city with play money: trade shares in real public figures, get margin-called, pay your taxes and rob a bot or two. Free, and nothing real is at stake.
❓ Common questions
How fast must a Schedule 13D be filed?
Since 2024, within five business days of crossing 5%. Before that the deadline was ten days.
Why does ownership disclosure matter?
A large holder can push for changes or a takeover, and other investors want to know before prices move.
📜 Where it came from
🔗 Related terms
- Information asymmetry: Information asymmetry is when one side of a deal knows more than the other.
- Oligopoly: An oligopoly is a market dominated by a few large firms, each of which must consider how the others will react.
- Market capitalization: Market capitalization is the total value of a company's shares: the share price multiplied by the number of shares outstanding.
- Liquidity: Liquidity is how easily something can be bought or sold quickly without moving its price much.
Categories: Market structure
Practise with $10,000 in play money
Free. No real money involved.