What is Rule 144?
Rule 144 is an SEC rule that applies to people (like insiders or early investors) who own restricted or control stock. These shares come with limits on how and when you can sell them. Rule 144 usually requires:
Holding period: You have to hold onto the stock for at least 6 months (or 1 year if it’s a private company).
Volume limits: You can’t sell more than a certain percentage of the stock in any 3‑month window.
How you sell: You can only sell through normal broker transactions — no special deals or mass solicitations.
Filing: You may need to file a form 144 with the SEC if you’re selling a lot.
Legend removal: The stock certificate needs to have the “restricted” label removed before you can sell.
What happens if my shares say “no Rule 144 restrictions”?
When an account note or term sheet states “no Rule 144 restrictions,” it means those hurdles have already been cleared. The shares are now freely tradable:
No waiting period
No volume cap
No extra SEC filings
Your shares are now just like regular stock, meaning you can sell them anytime, on any public market, without restrictions.
Please read our full disclosures before making an investment decision.