When can Rule 147 stock be sold to a nonresident?

Rule 147 is known as the "intrastate offering exemption" under the Securities Act of 1933. This regulation allows issuers to sell securities exclusively within one state without registering with the SEC, provided certain conditions are met. One of the key aspects of Rule 147 is its restriction on the resale of securities to nonresidents after the initial offering. Specifically, securities sold under Rule 147 cannot be sold to nonresidents for a nine-month period following the last sale of securities by the issuer.

This nine-month waiting period is designed to ensure that the securities remain local to the state in which they were issued, fulfilling the intrastate nature of the offering. After this period, holders of Rule 147 securities gain the ability to sell their shares to out-of-state individuals or entities, assuming the other conditions of the exemption have been met.

The other options do not accurately reflect the provisions of Rule 147 regarding the resale of securities to nonresidents, making the choice that indicates a nine-month period the correct answer.