Series 79: Other 144 Restrictions

Taken from our Series 79 Top-off Online Guide

Other 144 restrictions

Rule 144 puts further restrictions on affiliates (insiders). First, insiders must report any sales or purchases of control securities to the SEC on a beneficial ownership form (Form 4) within two business days of the sale/purchase. Second, insiders may not short securities of the company where they are insiders. Third, profits made from control securities held less than six months must be returned to the company. These kinds of profits are called short-swing profits. Finally, insiders are prohibited from participating in speculative option transactions involving control securities.

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Solomon Exam Prep Study Materials for the Series 79
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Rule 144 Resales of Restricted and Non-Restricted Securities

Resales by a non-affiliate of restricted securities

Resales by a control person of restricted securities

Resales by a control person of
non-restricted securities

Holding period (reporting company, current in SEC filings)

Six months

Six months

Holding period (non-reporting company)

One year

One year

Other requirements

Removal of restrictive legend from stock certificate

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