Rule 144: Facilitating the Resale of Restricted and Control Securities

Rule 144 is a regulation under the U.S. Securities Act of 1933 that provides guidelines for the resale of restricted and control securities to promote compliance with securities laws.

Rule 144 is a regulation enforced by the U.S. Securities and Exchange Commission (SEC) under the Securities Act of 1933. It provides a framework for the public resale of restricted and control securities under certain conditions, thereby helping maintain an orderly and efficient securities market.

Restricted Securities

Control Securities

Conditions for Resale

Holding Period

Adequate Current Information

Trading Volume Formula

Ordinary Brokerage Transactions

Filing a Notice with the SEC

Types of Securities Covered

Examples and Application of Rule 144

Historical Context

Applicability of Rule 144

Comparison with Other Regulations

Rule 144 vs Rule 144A

Rule 144 vs Section 4(a)(1)

Related Terms and Definitions

Restricted Securities

Control Securities

Public Sale

Form 144

Frequently Asked Questions about Rule 144

What is the purpose of Rule 144?

Who must comply with Rule 144?

How does Rule 144 benefit investors?

References

Summary