Restricted & Control Stock
Restricted stock is unregistered stock acquired privately (e.g., in a private placement) that generally must be held six months before resale; control stock is registered stock held by affiliates (officers, directors, >10% owners), whose sales face volume limits under Rule 144.
Rule 144 exists so insiders and private buyers cannot dump unregistered or control shares on the public without notice — Form 144 must be filed for larger sales. Penny-stock and insider-trading rules often appear in the same question cluster, so keep the concepts distinct.