Rule 144

Rule 144 is a regulation that provides a process for insiders, affiliates, or large shareholders of a public company to sell their restricted or controlled stock legally. It sets conditions to prevent market disruption, including holding periods (typically six months for reporting companies), volume limits, and the requirement to publicly disclose sales. Essentially, it ensures that these significant shareholders can sell their shares gradually and transparently, maintaining fair market prices while preventing sudden, large sales that could negatively impact the stock’s value.