Resale of securities Rule 144/144A/Section 4(a)(1½ ) / Section 4(a)(7)

Securities issued in an unregistered offering under the exemptions mentioned previously are restricted securities. In order to transfer or resell the restricted security by the holder, it has to be either registered or exempt from the registration requirement, which is a separate requirement from its initial offering.

The secondary sale of such restricted securities in the US is governed under these rules.

Rule 144 exemption

The Rule 144 exemption is a safe harbor provision. This allows nonaffiliate public resales of a private company's restricted securities after a one-year holding period by the security holder.

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