Legend on stock restricting its use as collateral

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Legend on stock, restricting its use as collateral Rule 144 stock is the most common type of  restriction, although some restricted stock is received  with other constraints.  In some 144 transactions  (non-affiliates), the restrictions lapse after a period of  time, in other cases, the restriction is permanent Restricted stock is  often a widely used  term, but applies  specifically to shares  with regulatory  restrictions Definition Types In addition to regulatory restrictions, a stock can have contractual restrictions, including blackout periods and  trading restrictions 1010271-Cor-10
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0903270-Col-MBA-18-19 23 Rule 144 Stock Closing Date 6-month  Anniversary 1st Year  Anniversary Merger Pricing Date Sign Underwriter’s  Lockup Agreement Lockup Expires IPO 6-month  Anniversary 1st Year  Anniversary Types of 144 Stock Transactions Conditions for Resale Conditions for Resale After 6 Months* After 6 Months* Conditions for Resale Conditions for Resale After Year 1 After Year 1 Reporting company for 90 days 6-month holding period for all shareholders Seller must be non-Affiliate for at least three months No solicitation Form 144 required No public information requirement Seller must be non-Affiliate for at least three months Can solicit No filing requirement with the SEC *  Changed in February, 2008 1010271-Cor-10
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0903270-Col-MBA-18-19 24 Company Insider (Affiliate)  Considerations – Section 16 Insiders of a company must file reports (Forms 3, 4)  disclosing equity interest and changes in interest via sales,  options and other derivatives [Section 16(a)] Any profit by an Insider from any purchase and sale, or any  sale and purchase, of equity securities of the company  (including purchase and sale through a derivatives position)  within any six-month period is disgorged to the issuer [Section  16(b)] An Insider is prohibited from selling short any equity security  of the issuer for more than 20 days.  Includes short calls and  long puts on more shares than the Insider already owns   [Section 16(c)]  Reporting Reporting Requirements Requirements Short Swing Short Swing Profit Liability Profit Liability Short Sales 1010271-Cor-10
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0903270-Col-MBA-18-19 25 Single Stock Risk Management  Key Considerations Understand Your Objectives and the Factors to Consider Evaluate Stock Specific Characteristics Create the Customized Client Solution Manage Risk Monetize Position Diversify Exposure Objectives: Factors to Consider: Implement appropriate strategies Price Outlook Need for Cash Today Taxes Stock Price Impact Securities Laws Signaling Impact Voting Rights Dividends Trading Volume Volatility Stock Loan Availability Note: Strategies for selling 
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