Rule 144A
E52552
Rule 144A is a U.S. Securities and Exchange Commission safe harbor rule that facilitates the private resale of restricted and control securities to qualified institutional buyers, enhancing liquidity in the private capital markets.
Statements (51)
| Predicate | Object |
|---|---|
| instanceOf |
SEC safe harbor rule
→
U.S. securities regulation → |
| abbreviation |
Rule 144A
→
|
| administeredBy |
U.S. Securities and Exchange Commission
→
|
| adoptedBy |
U.S. Securities and Exchange Commission
→
|
| appliesTo |
asset-backed securities
→
control securities → debt securities → equity securities → restricted securities → securitized products → |
| appliesToMarket |
U.S. private capital markets
→
|
| codifiedIn |
Securities Act of 1933
→
|
| complianceArea |
securities offering and resale
→
|
| condition |
availability of certain information about the issuer upon request
→
no general solicitation or general advertising by the seller → reasonable belief that purchaser is a qualified institutional buyer → resales limited to qualified institutional buyers → |
| defines |
criteria for qualified institutional buyer status
→
|
| effectiveDate |
April 19, 1990
→
|
| enables |
creation of institutional private placement market
→
institutional trading of privately placed securities → |
| exemptsFrom |
Securities Act registration for qualifying resales
→
|
| introduced |
1990
→
|
| jurisdiction |
United States
→
|
| keyConcept |
qualified institutional buyer
→
|
| language |
English
→
|
| legalBasis |
Section 4(a)(2) of the Securities Act of 1933
→
|
| marketImpact |
development of high-yield debt market
→
growth of private securitization markets → increased liquidity for restricted securities → |
| partOf |
U.S. federal securities laws
→
|
| purpose |
enhance liquidity in private capital markets
→
facilitate private resale of control securities → facilitate private resale of restricted securities → provide safe harbor from registration requirements for certain resales → |
| QIBThreshold |
at least $10 million in securities for registered broker-dealers
→
at least $100 million in securities owned and invested for own account or for clients → |
| relatedTo |
Regulation D
→
Rule 144 → Section 4(a)(2) private placements → |
| requiresPurchaserStatus |
qualified institutional buyer
→
|
| transactionNature |
private offering
→
|
| transactionType |
resale of securities
→
|
| usedBy |
corporate issuers
→
foreign issuers → institutional investors → investment banks → |
| usedFor |
offshore issuers accessing U.S. institutional capital
→
private placements of debt securities → private placements of equity-linked securities → |
Referenced by (2)
| Subject (surface form when different) | Predicate |
|---|---|
|
Rule 144A
→
|
abbreviation |
|
Regulation S
→
|
relatedTo |