The Securities and Exchange Commission (SEC) is proposing to change the rules around selling certain types of securities. They want to revise how the holding period is determined for securities obtained from market-adjustable ones, specifically for companies that are not listed on a national exchange. This means the holding period won't start until the securities are actually received upon conversion. The SEC also plans to require that Form 144 be filed electronically for companies subject to Exchange Act reporting, align the filing deadline for Form 144 with Form 4, and remove the need to file Form 144 for selling securities of companies not subject to Exchange Act reporting. These changes aim to make the process simpler and more transparent for investors and to prevent unregistered sales of securities.
Simple Explanation
The SEC wants to make selling some special stocks easier and simpler by changing how they count the time you need to keep them and letting people file forms online. They're also making rules so that smaller companies don’t have to file certain forms if their stocks aren't being watched closely by the big stock bosses.