Final answer:
The holding period for control stock under Rule 144 is 12 months, which is designed to prevent insider trading and maintain fair trading practices in the securities market.
Step-by-step explanation:
The main answer to the question under Rule 144, the holding period for control stock is D) 12 months. Rule 144, established by the Securities and Exchange Commission (SEC), sets the regulations for the sale of control and restricted securities. Control stock, owned by corporate officers, directors, or other major shareholders who have control over the company, must be held for a minimum of 12 months before it can be sold in the public market. This holding period is designed to prevent illegal insider trading and to ensure that those with control over a company are not unfairly profiting from access to privileged information. After this period, control securities may be sold under Rule 144 but are still subject to volume limitations and other conditions.In conclusion, the 12-month holding period for control stock under Rule 144 ensures fairness in the trading of securities and helps maintain market integrity by preventing the abuse of insider information.