Question

"An unaffiliated investor wishes to sell a large amount of "144" shares. This person can do so, without being subject to the Rule 144 volume limitations, after holding the securities for:"

Answer 1

Answer: 6 months

Explanation:

The Securities and Exchange Commission (SEC) of the United States uses Rule 144 to control and regulate sales transactions involving restricted, unregistered, and control securities.

When an unaffiliated investor to a company whose stock falls under Rule 144 wishes to sell them, they are indeed not bound by volume limitations if they sell after the holding period requirement of 6 months has been met.

This means that from the day the unaffiliated investor purchases and fully pays for the shares, they cannot sell them until 6 months from that very day have elapsed.