Series 79 practice questioneasyRule 144
An affiliate of a public company wishes to sell shares in reliance on Rule 144. Which of the following requirements must the affiliate satisfy?
- ARegistering the securities for resale
- BObtaining prior SEC approval
- CHolding the shares for at least 12 months
- DSelling within the applicable volume and manner-of-sale limitations✓ Correct answer
Explanation
Why D — Selling within the applicable volume and manner-of-sale limitations
Affiliates must follow volume and manner-of-sale restrictions under Rule 144. The trap is confusing affiliate rules with non-affiliate or restricted stock rules that have different holding or registration requirements.
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