Unit 18

Solicited transactions

A transaction initiated by an agent or registered representative

RULE 144: owns CONTROL STOCK

No Hold Yes Affiliate Yes Volume Limits

No affiliation

No Hold / No Limits

RULE 144: Restricted Stock (not registered) = 6 month hold

Non- Affiliate - 6 month hold then NO Volume limits

RULE 144: Restricted Stock (not registered) = 6 month hold

Affiliate - 6 month hold then YES Vol limits

Which of the flowing is true regarding short sales?

Selling short involves selling shares not yet owned.

Buying or selling OPTION

T + 1

EXERCISING an OPTION

T + 2

RULE 144: owns CONTROL STOCK

You are a Director, an Officer or you own 10% plus

When the registered representative is the one to recommend these bonds, it makes the trade:

a SOLICITED trade & Suitability MUST be determined on solicited trades.

Unsolicited transactions

are those initiated by the customer.

sell to open,

buy to close

An opening transaction can be

either a buy or a sell.

buy to open,

sell to close

When a customer owns a position and then sells that position

that is referred to as selling long or selling to close.

the CLIENT is specific and identifies the bonds he wants to purchase

trade is UN-SOLICITED