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?
- A5% of the company’s total assets
- B1% of the issuer’s net income from the prior year
- CGreater of 1% of shares outstanding or four-week AWTV✓ Correct answer
- DAll shares held for over two years, without restriction
Explanation
Why C — Greater 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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 995+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Underwriting & New Financing questions
- Which of the following best describes the role of the agreement among underwriters (AAU) in a syndicate?
- In a traditional IPO syndicate, which entity typically handles share allocation decisions among selling group members?
- Which of the following is a key element for establishing an underwriter’s due diligence defense under Section 11 in a…
- In an at-the-market (ATM) follow-on program, how are shares typically sold to investors?
- Which is NOT generally considered sufficient to demonstrate 'reasonable investigation' for Section 11 purposes in a…
- In a follow-on offering, which of the following is true regarding the use of a shelf registration statement?
- If an underwriter discovers a material misstatement in a registration statement after the effective date but before…
- At what stage in the IPO process are institutional investors typically asked to indicate interest and provide…
