It has to do with the marketing director selling stock from another company where they are most likely not an affiliate.
Hi @Terrence_Boyer, I’m happy to clarify - which part is confusing?
Rule 144 applies when an investor plans on selling control or restricted shares. Control shares are shares held by an affiliate (insider). Affiliates are officers, directors, and/or 10% shareholders in an issuer’s common stock. Restricted shares, which are unregistered shares, are subject to a 6 month holding period prior to resale.
A “de minimis” exception exists, that allows an investor to avoid both the filing requirements and rules related to Rule 144. An investor not selling more than 5,000 shares or $50,000 of overall value is not subject to Rule 144 requirements.
Rule 144 does not apply to any of the following circumstances:
- Non-affiliates, including managers and lower level employees of the issuers
- An affiliate of one company selling another company’s shares that they are not an affiliate of