A corporate affiliate (insider) who owns 500,000 shares of publicly traded stock wishes to sell shares under Rule 144. The average weekly trading volume over the past four weeks is 200,000 shares. What is the maximum number of shares the affiliate may sell in any 90-day period?

Why D — 200,000 shares

Under Rule 144, the volume limitation for affiliates (insiders) is the greater of 1% of the outstanding shares or the average weekly trading volume for the preceding four weeks. With an average weekly volume of 200,000 shares, and assuming 1% of outstanding shares is less than 200,000, the maximum is 200,000 shares per 90-day period. Affiliates must also file Form 144 with the SEC.