Securities Act Rule 144 is a “safe harbor” that provides objective standards that a security owner can rely on for compliant aftermarket transactions pursuant to Securities Act Section 4(a)(1). Rule 144 provides for compliant resales of restricted securities if a number of conditions are met, including holding the securities for six months or one year, depending on the company’s obligations (or lack thereof) under the Securities Exchange Act of 1934. In some circumstances, Rule 144 limits the amount of securities that can be sold and may restrict the manner of sale, depending on whether the seller is an affiliate of the company. An “affiliate” is “a person that, directly, or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, the” company.
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What is Rule 144 under the Securities Act of 1933?