Rule 144

Rule 144 is an SEC rule that provides a safe harbor for the public resale of restricted and control securities if certain conditions are met, such as holding periods, current public information, volume limitations, manner-of-sale requirements, and filing notices (for affiliates). In venture-backed exits, Rule 144 is relevant when selling founder or investor shares after an IPO, and Rule 144 compliance helps determine when shares can become freely tradable.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.