Demand Rights

Term Main definition
Demand Rights

The right of an investor to demand that the corporation file a registration statement under the U.S. Securities Act of 1933 for a registration for resale of his, her or its shares of the corporation's common stock. The SEC amended Rule 144 by shortening the holding period for non-affiliates, and non-affiliates are eligible to freely sell shares as long as the non-affiliate investor held the shares one (1) year or more after paying for the shares.  The escalating cost of being a public company has reduced the corporation's incentive to become a public company; and naturally it reduces the corporation's willingness to provide any meaningful Registration Rights.