Executive Services - Rule 144


Rule 144

The Securities and Exchange Commission (SEC) originally adopted Rule 144 in 1972 to regulate the sale of securities that are acquired in a non-public transaction (restricted stock) or are held by an affiliate of the company (control stock). The SEC adopted the rule as a safe harbor for the resale of these securities. Since its adoption, the rule has been amended several times to improve the liquidity and resale of applicable securities.

A Rule 144 sale must meet a series of conditions, including filing paperwork with the SEC and compliance with regulations that address when, how and how much restricted or control stock may be sold. Failure to comply with Rule 144 can lead to sanctions by the SEC as well as civil liability.

Baird has a dedicated and experienced team of Rule 144 specialists to help you navigate your sale of restricted or control stock under SEC Rule 144. To assist you with your sale of securities that are subject to Rule 144, Baird will work with the legal counsel of the issuing corporation to determine whether your shares can be cleared for trading. We will verify whether the required information is in place and will advise you about completing the required paperwork within the prescribed reporting time. We will also file your completed Form 144 with the proper exchanges, and we will duly report execution details to your company representative.
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