If restricted or control securities are to be sold in a public marketplace, the seller must first find an exemption from the Securities and Exchange Commission (SEC) registration requirements. Typically, the Federal Securities Act of 1993 requires that stock and securities are registered with the SEC before they can be sold. Rule 144 allows for the public resale of restrictive securities if specific conditions are met, under a “safe harbor” exemption for sellers.
If you want to sell restrictive securities, the securities lawyers at Pearson Butler can help you understand exemptions under Rule 144 and can help you with an opinion letter, if necessary.
Call (800) 265-2314 arrange a confidential consultation and learn more about this important matter.
Rule 144 Terms & Conditions
To sell restricted or control securities under Rule 144:
- There is a six-month or one-year holding period that will apply.
- Adequate and current information about the issuing company must be publicly available.
- There is a limit to the number of securities you can sell in this way.
- Transactions must be handled at routine trading transactions, without increased commissions for brokers.
- Form 144 must be filed with the SEC if the sale involves more than 5,000 shares or $50,000 in a 3-month period.
Drafting a Rule 144 Opinion Letter
Pearson Butler is experienced in working with the various parties involved to produce an opinion letter that allows the shareholders to meet the requirements under Rule 144 and sell their shares.
Call (800) 265-2314 or complete Pearson Butler’s online form to schedule a consultation.