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Bubba Corporation has 3,500,000 shares of common stock outstanding and its trading volume in the few weeks has been as follows: Week 1 - 43,000 Week 2 - 30,900 Week 3 - 37,500 Week 4 - 42,600 Week 5 - 33,000 (the most recent week) If an affiliated person wanted to liquidate some of his holding of 100,000 shares pursuant to SEC Rule 1 44, how many shares could he sell?
Correct Answer: B
36,000. Under Rule 144 up to one percent of the outstanding shares or the average weekly volume for the preceding four weeks, whichever is greater. The total volume for the last four seeks was 1 44,000 shares. The average is therefore 36,000 shares. This is greater than one percent of the shares outstanding (35,000).