Control Stock is stock that is acquired or owned by an officer, director, or person owning 10% or more of the outstanding stock of a company
Applying "Control Stock" to Securities Exams:
A control person is defined as an officer, director or 10% plus shareholder in a company. When a control person buys stock in his own company his stock is then considered control stock. If the control person wants to sell his control stock he is bound by Rule 144, although the holding period is waived. In any 90 day period the most he can sell is 1% of the outstanding shares or the average of the prior 4 weeks trading volume, whichever is greater.