Senior executives considered "control persons" at publicly traded companies must navigate the various regulatory requirements impacting transactions in company stock.
This rule, part of the Securities Act of 1933, pertains to unregistered shares of stock or shares owned by control persons. The regulation establishes parameters governing the sale of company shares by these individuals, including volume limitations on the number of shares that can be sold in a three-month period and the requirement to file Form 144 with the SEC.
Section 16 of the Securities Exchange Act of 1934 also applies to affiliates of publicly traded companies. This regulation requires certain filing forms (most commonly Form 4), measures for short-swing profits and prohibits the short selling of company shares by insiders.
Our team works with executives to ensure adequate and timely filing of all necessary regulatory forms.