Question

A husband owns 20% of the equity of a listed corporation, with his wife holding a 5% equity position in that corporation. If the wife wishes to sell her holding, she:_________ A. Is subject to all provisions of Rule 144 B. Is not considered to be an "affiliate" under Rule 144 since she owns less than 10%C. Must file a Form 144 within 90 days of selling D. May sell 1% of her holding every 90 days without filing Form 144

Answer 1

C. Must file a Form 144 within 90 days of selling

Step-by-step explanation:

A corporation is a legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that individuals possess: they can enter contracts, , sue and be sued, hire employees, own assets,loan and borrow money, and pay taxes

Types of corporations are C ,non profit,Limited Liability Companies(LLC) , and S corporation

If the wife wills to sell her equity position in that Corporation, then she must file a form 144 within 90 days of selling

Form 144 is a form that deals with the notice of proposed sale of securities with the Securities and Exchange Commission or SEC when placing an order to sell that company's stock during any three-month period in which the sale exceeds 5,000 shares or units.

Answer 2

A. is subject to all provisions of Rule 144.

C. Must file a Form 144 within 90 days of selling.

Step-by-step explanation:

In the question, the husband owns 20% and his wife holds 5% of the equity. However, the wife plans to put her own holding up for sale. The wife is subject to all the provisions of Rule 144. In addition, before she can proceed with her plan, she needs to fill the Form 144 and the form must be filled not more than 90 days after selling the holding.