In any business, the buying and selling of securities is a part of the financial planning and reporting that is required once a business hits a certain size and level. There is a lot of red tapes and legal guidelines that must be followed, and it can quickly get confusing and overwhelming. One of the important regulations that most people do not fully understand is the Securities Act Rule 144, which is part of the U.S. Securities and Exchange Commission’s rules and regulations that help control the selling of securities.
Basics of Selling Securities and the Legal Regulations That Apply
Selling securities often ends up being a very involved and complicated process, even for those who have done it before and even more so for those who are new to the entire process. Under Section 5 of the Securities Act of 1933, any securities that are sold must be properly registered with the U.S. Securities and Exchange Commission or qualify for an allowed exemption from being registered. This is where brokers come in to facilitate the process and ensure all state and federal regulations are upheld when it comes to the Rule 144 specifications.
Understating the Importance of Rule 144
Rule 144 delivers an immunity and allows the public resale of special and otherwise inaccessible securities when the right conditions are met, and the right process has been followed to attain exemption. You need to work with brokers and financial professionals who are licensed to deal in this kind of financial transfer. It is important to ensure that while you are upholding the federal requirements of Rule 144, you are also following all regulations for your local and state laws as well.
Contact Us Today for Help or More Information
To learn more and to get the assistance you need, call us today here at Colonial Stock Transfers and let us help you get started!
