Understanding SEC Rule 144 Restricted Stock

Rule 144 is a United States securities regulation covering the resale of restricted and control securities. These shares are often acquired through private transactions, employee stock ownership plans, seed funding arrangements, or from an affiliate of the issuing company. Unlike regular publicly traded shares, Rule 144 stock cannot always be sold immediately. Investors must meet specific conditions before reselling the securities publicly. The rule is designed to regulate how restricted shares enter the public market and to ensure that sales comply with SEC requirements.

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