Form 144 is a form issued by the SEC that is required whenever an order is made to sell a company’s stock during any three-month period in which the sale exceeds 5,000 shares or units or has an aggregate sale price greater than $50,000. The SEC requires filing of this form to ensure disclosure of potential changes to an issuer’s ownership structure.
The party filing Form 144 must represent a bona fide intention to sell the securities within a reasonable time frame after filing. This is to avoid manipulation of any related rights associated with the sale.
Such sales covered under Form 144 are often very close to the interests of the issuing company. Thus, the party filing Form 144 must also register the securities under Section 5 of the Securities Act of 1933. The Form 144 must contain the names of the issuer, the ticker symbol, and the name of the purchaser, if applicable. It also must indicate the number of shares for which registration is requested and the maximum dollar amount that the purchaser intends to retain in securities of the issuer.
By understanding and properly filing Form 144, not only are individuals following SEC Guidelines, but they are also being transparent and protecting the interests of their company and other stakeholders. Filing Form 144 is a necessary part of successfully trading in the securities market and helps to ensure better communication and a sound investment climate.
The party filing Form 144 must represent a bona fide intention to sell the securities within a reasonable time frame after filing. This is to avoid manipulation of any related rights associated with the sale.
Such sales covered under Form 144 are often very close to the interests of the issuing company. Thus, the party filing Form 144 must also register the securities under Section 5 of the Securities Act of 1933. The Form 144 must contain the names of the issuer, the ticker symbol, and the name of the purchaser, if applicable. It also must indicate the number of shares for which registration is requested and the maximum dollar amount that the purchaser intends to retain in securities of the issuer.
By understanding and properly filing Form 144, not only are individuals following SEC Guidelines, but they are also being transparent and protecting the interests of their company and other stakeholders. Filing Form 144 is a necessary part of successfully trading in the securities market and helps to ensure better communication and a sound investment climate.