What is the primary purpose of Form 144?

Form 144 is primarily utilized to report the sale of restricted or control securities by affiliates of the issuing company. The form acts as a notice to the SEC that an affiliate is intending to sell such securities, which typically involves stockholders who have been granted control over a substantial amount of the company's securities or who are restricted from selling them without following certain regulations. The filing of Form 144 is required under SEC Rule 144, which governs the sale of restricted securities and the conditions under which they can be sold in the public market.

When individuals or entities that hold restricted securities (which are often unregistered securities) or control securities (held by affiliates of a company) decide to sell their shares, they must submit this form to the SEC to ensure transparency and compliance with federal securities laws. This helps maintain an orderly market by alerting regulators and investors of upcoming sales that could potentially impact the stock's price.