Rule 144
Rule 144 applies to the resale by shareholders of stock acquired by means that do not involve a registration.
The purpose of the rule is to prevent issuers from selling stock on an exempt basis (without registering the shares)
to a purchaser who then distributes the stock to others. This is considered an underwriting unless Rule 144 is followed.
The Rule prescribes holding periods for stock and makes a distinction between "affiliates" and non-control persons.
When you acquire restricted securities or hold control securities, you must find an exemption from the SEC's
registration requirements to sell them in the marketplace. Rule 144 allows public resale of restricted and control
securities if a number of conditions are met. This overview tells you what you need to know about selling your
restricted or control securities. It also describes how to have a restrictive legend removed.
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