Series 79 practice questionhardRule 144
Which statement is true regarding the volume limitations for affiliate sales of stock under Rule 144?
- AAffiliates may sell unlimited shares after 6 months
- BVolume limits apply only to non-affiliates
- CThe lesser of 1% or four-week AWTV
- DThe greater of 1% outstanding or four-week AWTV during any three-month period✓ Correct answer
Explanation
Why D — The greater of 1% outstanding or four-week AWTV during any three-month period
Rule 144(e) uses the greater—not the lesser—of 1% outstanding and four-week average weekly reported volume for qualifying equity securities.
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