What is SEC Rule 144?

Rule 144 is a regulation enforced by the U.S. Securities and Exchange Commission (SEC) that sets the conditions for the sale or resale of restricted, unregistered, and control securities. Rule 144 provides an exemption from registration requirements for the sale of securities through the public markets if a number of specific conditions are met.

Do I need to follow Rule 144 requirements?

However, you’ll need to follow Rule 144 requirements. What is Rule 144? Rule 144 provides an exemption to the Securities Act of 1933 registration requirements, permitting the sale of restricted or control securities in the public market when certain conditions are met.

What is Rule 144(a)(3)?

Securities Act Rule 144 (a) (3) identifies what offerings produce restricted securities. After such a transaction, the security holders can only resell the securities into the market by using an effective registration statement under the Securities Act or a valid exemption from registration for the resale, such as Rule 144.