An SEC rule that provides a safe harbor for resales of restricted securities and control securities. Rule 144 under the Securities Act establishes criteria for determining whether a person is engaged in a distribution of securities. A person complying with the provisions of Rule 144 for a resale of securities is not considered an underwriter (within the meaning of Section 2(11) of the Securities Act) and can rely on the registration exemption in Section 4(a)(1) of the Securities Act for the unregistered resale of that person's securities.

Although Rule 144 purports to be a non-exclusive safe harbor, in practice, it is the primary method for an affiliate to resell securities.

For information on the requirements of Rule 144, see Practice Note, Resales Under Rule 144. For a discussion of resales of securities of non-reporting companies in particular, see Practice Note, Secondary Market Trading of Private Company Shares.