Some Examples of Exceptions to Rule 144
- Stock included in a Registration Statement is not subject to Rule 144 if sold exactly as described in the Issuer’s Prospectus. If not sold exactly as specified then Rule 144 is applied.
- Stock purchased from an Issuer, which relied Rule 504, Regulation D is not subject to Rule 144 if it is resold by a Non-Affiliate or Non-Control Person. (However, if the Issuer did not satisfy the exemption requirements of Rule 504 the stock would still be restricted even if a legal opinion had been prepared, so this only applies if it was done properly.)
Discuss Rule 144 Exemptions With A Qualified Broker To Be Sure
When in doubt, discuss your stock with an experienced Broker. Relying on so-called 144exemptions to avoid qualifying under Rule 144 only works when very specific requirements are met and it make sense to simply seek a Rule 144 legal opinion if there is any doubt.