Series 79 practice questionhardRule 144
An affiliate’s planned sale of restricted shares exceeds the average weekly trading volume limit under Rule 144. What must the affiliate do?
- AWait for non-affiliate status
- BSell up to 5% of shares
- CReduce the sale to the greater of 1% of outstanding shares or the AWTV✓ Correct answer
- DRegister the sale with the SEC
Explanation
Why C — Reduce the sale to the greater of 1% of outstanding shares or the AWTV
Affiliates must adhere to volume caps under Rule 144: the greater of 1% of outstanding shares or average weekly trading volume. Exceeding these limits requires a registered offering, not an exemption.
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