Explaining the Conditions of the SEC Rule 144 in Salt Lake City, UT

by | Nov 17, 2020 | Financial Services

The Security and Exchange Commission has a rule in effect that is meant as a safety precaution for sellers. This is known as Restrictions Removals & Rule 144. Here are the conditions which must be met before this rule can apply.


There is a period of time that the securities must be held. This time period is between 6 months and 12 months. The time period that is mandated depends on if the company is reporting or non-reporting. The time period is officially in effect the day the security is purchase by the buyer. If they are gifted, the date begins on when they were originally purchased, not when they were gifted.


Certain information must always be current and made accessible to the public before and after a sale. Such information that needs to be provided is the name of the corporate officers, the nature of the company, and any financial statements.


If you are an affiliate of the company, the SEC has placed a limit on how many securities can be sold within a certain time period. The limit is 1% of the available shares which are sold in a 3-month period. Only over-the-stock shares are able to be sold.


If an affiliate has any plans on selling a number of securities that is either $50,000 or 5000 shares, according to Rule 144 they must file a notice with the Securities and Exchange Commission.

If you need more information about whether this rule affects you, contact Colonial Stock Transfer Company, Inc. at http://www.colonialstock.com/.

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