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Series 79: Underwriting & New Financing
Series 79 practice questionhardRule 144

If an affiliate of a reporting company wishes to sell restricted securities under Rule 144, what is the maximum amount that can be sold in any three-month period?

  1. A5% of the company’s total assets
  2. B1% of the issuer’s net income from the prior year
  3. CGreater of 1% of shares outstanding or four-week AWTV✓ Correct answer
  4. DAll shares held for over two years, without restriction
Explanation

Why CGreater of 1% of shares outstanding or four-week AWTV

For qualifying equity securities, Rule 144(e) uses the greater of 1% outstanding or four-week average weekly reported trading volume during a three-month period.

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