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

Under Rule 144, what is the holding period for restricted securities of a reporting company before they can be sold?

  1. A6 months✓ Correct answer
  2. B3 months
  3. C12 months
  4. D24 months
Explanation

Why A6 months

Under Rule 144, restricted securities of a company that is subject to the Exchange Act reporting requirements (a reporting company) must be held for at least six months before they can be resold. For non-reporting companies, the holding period is one year. After the applicable holding period, the seller must also comply with other Rule 144 conditions such as volume limitations, manner of sale requirements, and filing Form 144 if the sale exceeds certain thresholds.

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