Quiz
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
R
Rule 144
An SEC rule that applies to public resales of restricted securities, as well as all sales by affiliates. The requirements include:
  • current public information about the issuer
  • holding periods for restricted securities, based on whether there is a reporting or a nonreporting issuer
  • unsolicited brokers' transactions
  • an amount limitation: the greater of either 1% of the outstanding stock or the average weekly trading volume may be sold during any three-month period
  • a Form 144 filing

Under Rule 144(b), known as Rule 144(k) before amendments in 2008, a nonaffiliate individual who has held securities long enough can sell his or her stock without meeting Rule 144 conditions. The seller can't be an affiliate at any time in the three months prior to the sale. Before the sale, under Rule 144(b) the holder of the securities will need to have the restricted legend removed from the stock. For details on Rule 144, see the section SEC Law: Rule 144.

Return to list Register Now

Try the new myStockOptions.com Glossary App! Now available for Android and iOS.

Get it on Google Play
The content is provided as an educational resource.
myStockOptions.com shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon.
Copyright © 2000-2018 myStockPlan.com, Inc. U.S. Patent 7,353,200.
Contact editors@mystockoptions.com for licensing information