What is the main requirement for filing Schedule 13G?

Schedule 13G is a form that is used to report a beneficial ownership stake in a company, specifically for certain qualified institutional investors or passive investors. The primary requirement for filing Schedule 13G is that the investor has acquired between 5% and 20% of the outstanding shares of the issuer. This allows companies and the investing public to be informed about significant but passive investments in their shares without the more stringent reporting requirements associated with Schedule 13D, which is used when there is an intention to exert control over the company.

The key aspect of Schedule 13G is that it is primarily intended for those investors who do not have a control intent but hold a notable passive stake within the specified percentage range. This makes it a simpler and quicker way for certain investors to meet regulatory requirements while also reflecting their position in the company.