Series 79 practice questionhardRule 144
An affiliate of a non-reporting company seeks to sell 10,000 restricted shares after one year. Which is true regarding Rule 144 requirements?
- ANo holding period applies because the company is non-reporting.
- BThe affiliate is exempt from volume limitations.
- CThe affiliate must file Form 144 only for sales over 1,000 shares.
- DThe affiliate is subject to volume limits and must meet a one-year holding period.✓ Correct answer
Explanation
Why D — The affiliate is subject to volume limits and must meet a one-year holding period.
Restricted securities of a non-reporting issuer require a one-year holding period under current Rule 144. Affiliates remain subject to current-information, volume, manner-of-sale, and applicable Form 144 conditions.
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