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Term of the Day | Investopedia
A Securities and Exchange Commission rule that sets the conditions under which restricted, unregistered and control securities can be sold. These are the five conditions that must be met for these securities to be sold: 1. The prescribed holding period must be met.
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TERM OF THE DAY
Rule 144
Rule 144 is a regulation enforced by the U.S. Securities and Exchange Commission that sets the conditions under which restricted, unregistered and control securities can be sold or resold. Rule 144 provides an exemption from registration requirements to sell the securities through public markets if a number of specific conditions are met. The regulation applies to all types of sellers, in addition to issuers of securities, underwriters and dealers.
Breaking it Down:
Rule 144 regulates transactions with restricted, unregistered and control securities. These type of securities are typically acquired in unregistered... Read More
Related to "Rule 144"
How is trading volume regulated by the Securities and Exchange Commission (SEC)?
Learn about how the SEC uses the trading volume formula as one requirement for an exemption to the ban on the resale of restricted securities. Read More
What are unregistered securities or stocks?
Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with the Securities and Exchange Commission (SEC).Read More
What is an unregistered mutual fund?
An unregistered mutual fund is a general name given to investment companies that are not formally registered with the Securities and Exchange Commission (SEC). Read More
 RELATED DEFINITIONS
Unregistered Shares
Investopedia explains: Unregistered shares are securities that are not registered with the Securities and Exchange Commission.
Legend
A statement on a stock certificate noting restrictions on the transfer of the stock, often due to SEC requirements for unregistered securities.
 RELATED DEFINITIONS
Rule 144A
A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves.
Qualified Institutional Buyer - QIB
A corporate entity that falls within the "accredited investor" category, defined in SEC Rule 501 of Regulation D.
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