Series 79 practice questioneasyRule 144
Which of the following is a requirement for affiliates selling restricted securities under Rule 144?
- AThe securities must have been held for at least 12 months regardless of reporting status.
- BGreater of 1% of shares outstanding or four-week AWTV in any 90-day period✓ Correct answer
- CSecurities may be sold without restriction after 3 months if the issuer files reports.
- DNo filing is required with the SEC prior to sale.
Explanation
Why B — Greater of 1% of shares outstanding or four-week AWTV in any 90-day period
An affiliate's equity sales are generally capped during any three months at the greater of 1% outstanding or four-week AWTV; restricted securities also must satisfy the applicable holding period, and Form 144 applies above its filing threshold.
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