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 (control persons) include directors, officers, and shareholders owning 10% or more of the company's outstanding stock — anyone in a position to influence or control the company. Not all employees are affiliates (C). Owning 1% alone doesn't make someone an affiliate (A). Holding period is unrelated to affiliate status (D).
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