Series 79 practice questionhardRule 144
A reporting company’s affiliate has held restricted shares for 8 months and wants to sell them under Rule 144. The company has timely filed all required SEC reports. What is the earliest the affiliate can sell the shares?
- AAfter 8 months, as long as the company is current in filings
- BAfter 6 months, subject to current public information, volume, and manner-of-sale limitations✓ Correct answer
- CAnytime, if online trading is available
- DOnly after 12 months, regardless of public company status
Explanation
Why B — After 6 months, subject to current public information, volume, and manner-of-sale limitations
For reporting companies, affiliates can sell after 6 months if current public information and other Rule 144 conditions are met. The trap is thinking 12 months always applies; it only does for non-reporting issuers.
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