Rule 144A

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DEFINITION of 'Rule 144A'

A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves.

INVESTOPEDIA EXPLAINS 'Rule 144A'

This has substantially increased the liquidity of the securities affected because institutions can trade these securities amongst themselves, side-stepping limitations that are imposed to protect the public.

RELATED TERMS
  1. Long Inverse Floating Exempt Receipt ...

    A floating rate debt security traded among qualified institutional ...
  2. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  3. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  4. Qualified Institutional Buyer - ...

    A corporate entity that falls within the "accredited investor" ...
  5. Liquidity

    1. The degree to which an asset or security can be bought or ...
  6. Institutional Investor

    A non-bank person or organization that trades securities in large ...
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