Series 79 practice questioneasyRule 144
A non-affiliate who owns restricted stock of a reporting company has held the shares for 13 months and wishes to sell. Which statement is true?
- AThey must file Form 144
- BThey are subject to affiliate volume limitations
- CThey may sell freely, provided the company is current with SEC filings✓ Correct answer
- DThey must register the shares for resale with the SEC
Explanation
Why C — They may sell freely, provided the company is current with SEC filings
After a 12-month holding period, non-affiliates may sell freely if the company is current in filings. The trap is confusing affiliate and non-affiliate requirements under Rule 144.
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