Resales Under Rule 144A and Section "4(1½)" | Practical Law

Resales Under Rule 144A and Section "4(1½)" | Practical Law

This Note examines unregistered resales of eligible securities to qualified institutional buyers (QIBs) under Rule 144A under the Securities Act of 1933 and resales among sophisticated investors under the so-called Section "4(1½)" exemption (also referred to as the Section "4(a)(1½)" exemption). It also discusses the Section 4(a)(7) exemption for resales of securities to accredited investors that satisfy certain conditions, which is a codified version of the Section "4(1½)" exemption added to the Securities Act in 2015.

Resales Under Rule 144A and Section "4(1½)"

Practical Law Practice Note 6-382-8768 (Approx. 21 pages)

Resales Under Rule 144A and Section "4(1½)"

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
This Note examines unregistered resales of eligible securities to qualified institutional buyers (QIBs) under Rule 144A under the Securities Act of 1933 and resales among sophisticated investors under the so-called Section "4(1½)" exemption (also referred to as the Section "4(a)(1½)" exemption). It also discusses the Section 4(a)(7) exemption for resales of securities to accredited investors that satisfy certain conditions, which is a codified version of the Section "4(1½)" exemption added to the Securities Act in 2015.