We work with shareholders, brokers, corporate issuers and market makers, helping make the most of Rule 144 that allows for the public resale of controlled and restricted securities contingent on some conditions. Our attorneys are here to help you make sure that you meet these conditions. Get in touch with to better plan and execute the sale of restricted or controlled securities.
Are you an executive who is planning to sell restricted or control stock? Under the United States Securities Laws, shares of stock will have to be registered with the Securities and Exchange Commission prior to the selling of such stock in the open marketplace. Rule 144, however, is an exception to this requirement.
Rule 144 allows for the public resale of control securities and restricted securities when a set of conditions are met. If you need to sell your restricted or control securities, we encourage you to speak with The Tracy Firm today.
Selling Restricted or Control Stock Under Rule 144
Control securities are held by an executive of an issuing company and restricted securities are those which are obtained in unregistered and private sales or from an affiliate of the issuer. If you want to sell your restrictive or control securities, you will need to meet the conditions that are set forth in Rule 144.
Following are the conditions of Rule 144:
- Completion of the holding period – You must hold the restricted securities for a certain period of time depending on the company that issued the securities.
- Adequate amount of information on the issuing company – There will need to be a sufficient amount of information regarding the issuing company available before the sale can be completed.
- Trading volume formula compliance – The formula determines what percentage of the share will be sold in a given period of time.
- Ordinary brokerage transaction usage – The sales must be handled as a routine trading transaction in all aspects.
- Filing a notice of proposed sale – The affiliate will need to submit a notice with the SEC and will need to complete the sale within three months.
As an executive or director within a company, you may face a Rule 144 matter that will need the close attention of a dedicated lawyer from The Tracy Firm, Ltd. We offer total representation to help you handle your securities needs. We have provided high-quality representation to issuers and shareholders in various aspects of securities law. We offer one day turnaround for all Rule 144 opinion letters. In addition, we can seek out solutions to complex restricted stock situations. Do not hesitate to email our company today!
Contact The Tracy Firm Now!
Our legal team at The Tracy Film, Ltd. is headed by General Counsel and Managing Partner Adam S. Tracy. Mr. Tracy is a competent lawyer and capital markets consultant who is well-versed in all aspects of securities law. He also handles matters related to corporate finance, corporate law, IPO issues and much more. Contact our firm or call us toll free at 1.888.978.9901 so we can provide you with the legal guidance that is needed to address your Rule 144 compliance needs!