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Strategies & Market Trends : Shorting stocks: Mechanical aspects
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To: George McMeen who wrote (18)6/16/1997 4:25:00 PM
From: George McMeen   of 172
 
Rule 144 (**but over what period of time?) Ans: 3 months

I found this in the MULTIMEDIA GAMES, INC. FORM S-3 filed June 16th
edgar-online.com

Rule 144 provides that, in general, a person holding restricted securities for a period of one year may, every three months thereafter, sell in brokerage transactions an amount of shares which does not exceed the greater of one percent (1%) of the Company's then outstanding Common Stock or the average weekly trading volume of the Common Stock during the four calendar weeks prior to such sale.

and so, to answer my question - after one year holding the shares one year, a non-affiliate can unload EVERY 3 MONTHS without registering with the SEC as long as the amount of shares does not exceed the greater of:
--- 1% of the outstanding shares
--- a weeks worth of trading volume in the outstanding shares

Cheers. George

I would also like to "amend" my previous statement:

the only exception is for person who has held their stock at least two years AND WHO HAS NOT WORKED FOR THE COMPANY DURING THE 90 DAYS PRIOR TO SALE. (in such case, a person is free to unload as much as he/she likes without registering with the SEC)

from the S-3
"Rule 144 also permits, under certain circumstances, the sale of shares without any quantity limitations by a person who is not an affiliate of the Company and was not an affiliate at any time during the 90 day period prior to sale and who has satisfied a two year holding period."

Cheers. George
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