BFD Corporation has 2,160,000 common shares outstanding. The average weekly volume on all exchanges last week was 18,500; two weeks ago, it was 21,400; three weeks ago, it was 22,600; four weeks ago, it was 19,500; and five weeks ago, it was 15,100. Mr. Gomez, the president of the listed BFD Corporation, owns 35,000 shares of BFD common and filed Form 144 yesterday. Under Rule 144, what is the maximum number of shares he may sell during the allotted time?
21,600 Explanation: Rule 144 restricted securities are limited in the number of shares that may be distributed to either 1% of the shares outstanding or to the average weekly volume of that security on all exchanges during the preceding four weeks, whichever is greater. Since the average weekly volume for the preceding four weeks is 20,500 (sum of previous four weeks trading volume divided by 4 weeks; 18,500 plus 21,400 plus 22,600 plus 19,500 equals 82,000 divided by 4 weeks) and 1% of the shares outstanding is 21,600, Mr. Gomez would be allowed to distribute 21,600.
