What is a stock opinion letter?
Legal opinion letters are issued to transfer agents on behalf of holders of restricted stock seeking to sell the stock freely in the public markets. Transfer agents typically require a lawyer’s opinion explaining the legal basis for lifting the restriction on the stock and allowing it to be freely traded.
What is Rule 144 restricted?
What Is Rule 144? Rule 144 is a regulation enforced by the U.S. Securities and Exchange Commission (SEC) that sets the conditions under which restricted, unregistered, and control securities can be sold or resold.
What is the purpose of Rule 144?
Rule 144 provides an exemption and permits the public resale of restricted or control securities if a number of conditions are met, including how long the securities are held, the way in which they are sold, and the amount that can be sold at any one time.
When Should Form 144 be mailed?
A. Form 144 must be filed at the time the order to sell is placed with the broker, if the number of shares exceeds 5,000 shares and the aggregate sale price exceeds $50,000.
How long is a Form 144 good for?
How long is the Form 144 good for? For an affiliate of an issuing company, each Form 144 is good for three months from the filing date.
When can you sell Rule 144?
Rule 144 requires a selling security holder to hold shares of a reporting company for six months after the securities are fully paid for.
Who Must File Form 144?
Form 144, required under Rule 144, is filed by a person who intends to sell either restricted securities or control securities (i.e., securities held by affiliates. Form 144 is notification to the SEC of this intention to sell and must take place at the time the sell order is placed with the broker-dealer.
How long is a Form 144 valid for?
three months
How long is the Form 144 good for? For an affiliate of an issuing company, each Form 144 is good for three months from the filing date.
Who is required to file a Form 144?
affiliate
Form 144 must be filed with the SEC by an affiliate as a notice of the proposed sale of securities when the amount to be sold under Rule 144 during any three-month period exceeds 5,000 shares or units or has an aggregate sales price in excess of $50,000.
Who must file a Form 144?
Form 144 is a notice form that must be filed with the SEC by an affiliate of an issuer who intends to resell restricted or control securities of that issuer in reliance upon Rule 144.
Who is considered an affiliate under Rule 144?
Rule 144 at (a)(1) defines an “affiliate” of an issuing company as a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such issuer.”