The SEC recently amended Rule 144, the exemption from registration under the securities laws for resale of restricted securities. This rule is most frequently relied upon by stockholders and therefore dealt with just as frequently by issuers, in part by lessening the required holding period for such securities prior to resale.
What This Decision Means to You
If your company is a public company, you may encounter requests from stockholders for opinions permitting them to sell your securities under Rule 144. If you are a holder of securities, you may wish to sell under Rule 144, and you will be glad to know that the restrictions under Rule 144 are being eased.
In either case, you need to be familiar with the new framework of permitted resales under Rule 144. The amendments take effect on February 15, 2008.