Series 79 practice questioneasyRule 144
An affiliate of a reporting company wants to sell restricted shares under Rule 144. Which of the following is a requirement?
- AThere is no holding period for affiliates.
- BThere is a 1-year minimum holding period for affiliates.
- CThere is no volume limit for affiliates.
- DThe affiliate is subject to volume and manner-of-sale requirements under Rule 144.✓ Correct answer
Explanation
Why D — The affiliate is subject to volume and manner-of-sale requirements under Rule 144.
Affiliates must satisfy volume and manner-of-sale rules under Rule 144. Non-affiliates have fewer restrictions after the holding period, but affiliates have ongoing requirements.
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