Question

An officer of a company has acquired shares of that issuer in the open market. If the officer wishes to sell the shares:

Answer 1

Answer: C. II and III

Step-by-step explanation:

As the shares were acquired by the officer on the open market, they are considered Control Stock. Sale of Control Stock falls under the purview of Rule 144 of the SEC that governs the sale of restricted, unregistered, and control securities so a Form 144 will need to be filed with the Sec making III correct.

Furthermore, control stock are not subject to a holding period requirement so option II is correct as well. Option C is therefore the best answer.