As a general rule, "afflilates" are individuals that are in a relationship of control with the issuer, such as an executive officer, or large shareholder or a director. In 1997 the SEC proposed a bright-line test for the definition of an affiliate that would indicate that a person would not be deemed an affiliate if the person is not (1) a 10% owner, (2), A Section 16 reporting person (3) A director of the issuer. This proposal has not yet been enacted, however it is generally accepted as indicative of the SEC's view or perspective on the issue. 

Affiliate State is particularly applicable when the the affiliate sells issuer securites in a Rule 144 transaction, which is an unsolicited brokers transactin on a stock exchange (include the Nasdaq and the NYSE). Before such a transaction can occur, Rule 144 requires that the issuer be current in its filings with the SEC. The rule limites the amount of stock that can be sold in any three month period. Certain Rule 144 transactions also require the advance filing of SEC Form 144. 

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