What is the Trading Volume Formula for Affiliate Sales Under SEC Rule 144?

Affiliate Trading Volume Formula Under Rule 144

An Affiliate of an OTC Markets Pink Sheet or OTC Bulletin Board Issuer is limited in the number of equity securities he or she may sell during any 3 month period by SEC Rule 144.  This Rule 144 trading volume formula differs from that used by Affiliates owning stock in NASDAQ or NYSE Issuers, which unlike OTC microcap public companies, are traded on a National Exchange.   

1% of the Issued and Outstanding

Under Rule 144, the number of shares sold by an Affiliate in an OTCBB, OTCQX, OTCQB or OTC Markets Pink Sheet Issuer cannot exceed the greater of 1% of the outstanding shares of the same class being sold.  This trading volume formula is the key to the Affiliate obtaining a Rule 144 opinion letter from an experienced securities lawyer like Matt Stout

OTCLawyers.com assists the Affiliates of OTC Issuers in the filing of their notice of sale using SEC Form 144, and securities lawyer Matt Stout regularly drafts 144 opinions when requested by Affiliates, transfer agents and brokers.  

 

 

One thought on “What is the Trading Volume Formula for Affiliate Sales Under SEC Rule 144?

  1. Pingback: Does the Issued and Outstanding Matter When Selling Restricted Stock Under Rule 144? | Buy and Sell Restricted Stock

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