Common Questions and Answers about Rule 144

by | Sep 21, 2020 | Financial Services

In the United States, reselling unregistered securities in the public stock market is risky and illegal. There has been a variety of new laws, regulations, and exemptions to combat this loophole, and one of the most common ones is rule 144. If you are new to this rule and would like to know more information, here are a few common questions people ask.

What is Rule 144?

Restriction Removals and Rule 144 is an exemption that allows you to legally sell unregistered securities under specific conditions and regulations.

Why is this rule So important in Business?

This rule is important because it allows you to sell your securities in the public stock market without having to register them with the SEC. In addition, shareholders and investors will also be able to sell their restricted securities, making them more valuable.

Who Applies to This Rule?

This rule applies to anyone who works as an affiliate for the issuing business who desires to sell their securities or a non- affiliate worker who wants to share their restricted securities.

Who Doesn’t Apply to this Rule?

Brokerage firm sales in the public market, and private transactions such as pledges and estate distributions. Are you ready to take control of your company’s financial information and elevate your success? At Colonial Stock Transfer, we offer a variety of personalized services and software such as crowdfunding software, SEC EDGAR filings, IPO, and a suite of services for entities that are privately held.

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