1. An investor, who purchased 11 percent of the preferred class of stock during the initial private offering, has been informed that the company is going public, and she wants to sell all of her shares. She has held the shares for eight months. Can she freely sell them once the company goes public?
a. Yes, she can sell as many of the securities as she wants because they are control securities and she has held them for more than six months.
b. No, because she has not held them for more than one year.
c. Yes, although they would be control securities that are restricted, she has held them for more than six months. However, she may only sell an amount equal to the average weekly trading volume for the prior four weeks or 1 percent of the shares