Series 79 practice questionmediumRule 144
An affiliate of a reporting company wants to sell restricted securities under Rule 144. Which volume limitation applies?
- ANo more than 5% of the issuer's total outstanding shares per month
- BGreater of 1% of shares outstanding or four-week AWTV in any three-month period✓ Correct answer
- C25% of the issuer's float per trading year
- DA flat 50,000 shares per quarter
Explanation
Why B — Greater of 1% of shares outstanding or four-week AWTV in any three-month period
The Rule 144 volume limit for affiliates is the greater of 1% of outstanding shares or the average weekly trading volume from the prior four weeks in any 90-day period. Higher thresholds or flat numbers are incorrect and can cause compliance issues if misunderstood.
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