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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Rule 144 Resales of Restricted and Non-Restricted Securities |
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Resales by a non-affiliate of restricted securities |
Resales by a control person of restricted securities |
Resales by a control person of |
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Holding period (reporting company, current in SEC filings) |
Six months |
Six months |
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Holding period (non-reporting company) |
One year |
One year |
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Other requirements |
Removal of restrictive legend from stock certificate |
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