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Series 7 practice questionhardEquity Securities — Rule 144 — Non-Affiliates

A non-affiliate investor acquired restricted stock from an issuer that files reports with the SEC. After holding the stock for one year, which of the following Rule 144 restrictions still applies?

  1. AVolume limitations
  2. BManner of sale requirements
  3. CForm 144 filing requirement
  4. DNone of the above — all restrictions are lifted for non-affiliates after one year✓ Correct answer
Explanation

Why D — None of the above — all restrictions are lifted for non-affiliates after one year

For non-affiliates holding restricted securities of a reporting company, all Rule 144 restrictions (including volume limitations, manner of sale requirements, current public information requirement, and Form 144 filing) are removed after a one-year holding period. Non-affiliates of reporting companies may sell freely after one year. Affiliates, however, remain subject to volume, manner of sale, and filing requirements indefinitely.

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