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
