SIE practice questionhardRule 144 — Control Securities
Which of the following is considered an affiliate (control person) under Rule 144?
- AAny employee of the company regardless of position
- BAny investor who owns at least 1% of the outstanding shares
- CAny investor who has held shares for more than one year
- DA director, officer, or 10%+ shareholder who can influence company decisions✓ Correct answer
Explanation
Why D — A director, officer, or 10%+ shareholder who can influence company decisions
Under Rule 144, affiliates or control persons include directors, officers, and shareholders owning 10% or more of the company's outstanding stock when they can influence or control the company. Not all employees are affiliates, owning 1% alone is not enough, and holding period does not determine control-person status.
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