Question

Rule 144 was derived from which of the following Acts?

1) Securities Act of 1933
2) Securities Exchange Act of 1934
3) Trust Indenture Act of 1939
4) Securities Exchange Act Amendment of 1970

Answer 1

Rule 144 comes from the Securities Act of 1933, which established disclosure standards for public securities and led to the establishment of the SEC.

Step-by-step explanation:

Rule 144, which outlines the conditions under which restricted, unregistered, and control securities can be sold, was derived from the Securities Act of 1933. The Securities Act of 1933 is significant as it established legal standards for the disclosure of information on publicly traded securities, such as stocks and bonds. This act, along with others, ultimately led to the formation of the Securities and Exchange Commission (SEC), which now regulates the investment industry and enforces rules like Rule 144 to help prevent market abuses and to protect investors.