Rule 144

Rule 144 – Resale of Restricted Securities

What is Rule 144?

Rule 144 of the Securities Act provides a safe harbor for the public resale of restricted and control securities without SEC registration, under certain conditions.

Key Requirements:

  • Holding period: 6 months for reporting companies; 1 year for others

  • Adequate current public information must be available

  • Volume limits apply for affiliates

  • Manner of sale: Must comply with broker or market conditions

  • Filing Form 144: Required for large sales by affiliates

Who Uses Rule 144?

  • Founders and executives of public companies

  • Private investors holding restricted stock

  • Investors exiting PIPE deals