If you are not familiar with the term Section 16, Section 16 is a section of the Securities Exchange Act of 1934. In fact, it is section 16 of the act. Section 16 is a way to attempt to mitigate insider trading at companies. It states that any person who is a director of the company, an officer of the company, or a 10% or more beneficial owner, directly or indirectly, they must file Forms 3, 4, and 5. These forms report the level of equity interests whenever a significant change occurs. The terms that you will see referenced here are reporting owner, who is the person of interest here, and issuer, who is the company that in which the reporting owner has equity.