To sell control stock or restricted stock, which form must be filed?

• A. Form 144 is required
• B. Form S-3 is required
• C. Form 10 is required
• D. Form BD is required

Answer: (A)

When insiders or holders of restricted or control stock plan to sell into the public market, they must file Form 144. This form serves as a notice of the proposed sale under Rule 144 of the Securities Act, giving the SEC and the market details about the size of the sale, the intended method, and the proposed date. It’s required in particular when the sale in the next 90 days would exceed certain thresholds (5,000 shares or $50,000 in aggregate market value), and the sale must occur within a 90-day window after filing. The form itself is not a permission slip; it’s a notice that helps monitor affiliate sales and prevent market manipulation.

Other forms are used for different purposes. Form S-3 is a registration statement used to register new securities for public offerings; Form 10 is a full registration for a company’s securities, often for a primary listing; Form BD relates to broker-dealer registration. None of these are the notice requirement for selling restricted or control securities under Rule 144.