The SEC has released the final language for certain amendments to Rule 144. Rule 144 is the SEC rule that allows a seller of securities to determine if it is an underwriter. This determination is important because anyone deemed not to be an issuer, underwriter, or dealer has an exemption from the federal law requirement that the sale of securities must be registered.
The new Rule 144 shortens the holding period requirement for the sale of restricted securities, reduces the restrictions applicable to the resale of securities by non-affiliates, and increases certain ownership thresholds that affect how many restricted securities can be sold.
