What action must a corporate insider take when selling shares under Rule 144?

When a corporate insider is selling shares under Rule 144, the requirement to file a Form 144 before the sale is a crucial step. Rule 144 governs the sale of restricted and control securities, providing a framework for insiders to sell their shares legally without the need for full registration with the SEC.

Filing Form 144 allows the SEC to be informed of the planned sale, which helps maintain transparency in the market. The form must include details such as the number of shares to be sold and the intended method of sale. This requirement is primarily designed to prevent market manipulation and provide a level of disclosure for the benefit of investors.

When insiders comply with this rule, it ensures that they are not taking unfair advantage of their position while also balancing the need for liquidity in their investment. Failure to file the form before selling could result in violations that could lead to penalties or restrictions on future sales.

In contrast, obtaining approval from the SEC, providing a public announcement, or notifying FINRA after the sale are not required actions under Rule 144. These steps do not align with the structured process established by Rule 144 for sales by corporate insiders.