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SEC Rule 144A

Permits the private resale of securities to qualified institutional buyers (QIBs) without registration under the Securities Act of 1933.

Rule Overview

Jurisdiction: United States

Regulator: SEC

Topic: Sale of Securities

Overview
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Further Reading

Allows QIBs to purchase securities in private transactions, provided that the seller takes reasonable steps to ensure the buyer is aware of the exemption from registration.

The rule defines a QIB as an entity that owns and invests at least $100m in securities, or a dealer that owns and invests at least $10m in securities.

The rule also requires that the securities be sold only to QIBs, and that the seller provide certain information to the buyer, such as the issuer’s financial statements and a brief description of the issuer’s business.

Latest News More on 17 CFR 230.144A 

Further Reading

CFR 2022 Go to https://www.govinfo.gov/content/pkg/CFR-2022-title17-vol3/pdf/CFR-2022-title17-vol3-sec230-144A.pdf