Do you know what Rule 144 is?
If you want to sell restricted, unregistered, or control securities in a public market, you will need to get an exemption from the SEC’s (The Securities and Exchange Commission) registration requirements. The rule lays out a series of requirements that a shareholder must complete in order to sell or resell unregistered, “restricted”, or “controlled” securities in the open market. Restricted securities are those purchased from the issuing corporation or an affiliate of the issuer through unregistered, private transactions. The securities owned by an affiliate of the issuing firm are known as control securities, so this person is a person who has a controlling relationship with the issuer, such as an executive officer, a director, or a major shareholder. So, if you are in this position and intend to sell these types of securities, you can comply with Rule 144’s requirements. As we mentioned in the previous paragraphs, restricted, unr...