Form 144 | |
Also known as Rule 144, this is a form which must be filed with the SEC when an executive officer, director or affiliate of a company places an order to sell that company's stock. |
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There are five basic requirements to sell under 144: -The form must be filed properly. -Adequate current public information must be available. For example, required reports such as the 10K and 10Q forms must have been filed with the SEC. -Volume limitations have to be met. One limitation is the sale must not be greater than 1% of outstanding shares. -The transaction must be made by a stockbroker in accordance with certain procedures and rules. -If the securities are restricted they cannot be sold until one year after the date the affiliate paid the entire purchase price. |