Holding Periods and Legend Removal

What this video covers

• When the holding period clock actually starts for a purchase, and why a promise to pay does not start it
• The difference between acquisition from an issuer or affiliate versus a purchase that requires full payment
• How to apply the 90-day reporting history test to determine whether the six-month or one-year holding period applies
• Why subject to the Securities Exchange Act of 1934 reporting requirements for at least 90 days immediately before sale triggers the shorter six-month period
• What happens when an issuer lacks 90 days of reporting history or is not subject to those requirements at all
• Why satisfying the holding period only makes a safe-harbor resale available when other conditions are met, and does not automatically remove a restrictive legend
• The supervisory and compliance actions needed when an associate attempts to sell restricted securities before the applicable holding period expires