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SEC Rule 144A: Private Resales of Securities to Institutions

U.S. safe-harbor rule permitting private resales of eligible securities to qualified institutional buyers, central to many institutional debt and high-yield bond offerings.

Use It For

Use Rule 144A to compare China’s company-bond and specialized bond reforms with a U.S. model that deepens institutional debt markets by limiting the resale market to qualified institutional buyers.

Teaching Notes

The rule is not a company-law capital rule. It is included in Unit 3 because modern corporate finance often uses securities-law exemptions and institutional resale markets to raise debt capital efficiently.