Series 79 practice questionmediumRule 144
Which of the following is required before an affiliate of a reporting company can sell restricted securities under Rule 144?
- AA lock-up agreement with the issuer
- BA two-year holding period
- CSEC pre-clearance of the intended sale
- DAdequate current public information about the issuer✓ Correct answer
Explanation
Why D — Adequate current public information about the issuer
The issuer must have current public information for Rule 144 sales by affiliates. A two-year holding period or SEC pre-clearance are not required; lock-up applies only in certain cases.
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