Series 79 practice questionhardRule 144
A non-affiliate of a reporting company owns restricted stock and wants to sell after holding it for 7 months. Which is true?
- A6-month holding period; no volume or manner-of-sale limits if public information is current✓ Correct answer
- BThe non-affiliate can sell immediately
- CThe non-affiliate must file Form 144
- DVolume restrictions always apply to non-affiliates
Explanation
Why A — 6-month holding period; no volume or manner-of-sale limits if public information is current
Non-affiliates in reporting companies may sell after 6 months if current public information exists and without volume/manner-of-sale limits. Affiliates have more restrictions, and Form 144 is not always required for non-affiliates.
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