Restricted Stock
Content
Definition
Restricted Stock refers to shares granted to company insiders with limits on their sale or transfer, subject to vesting conditions.
Usage and Context
Restricted stock is equity given to insiders, with limits on selling or transferring until certain conditions are met.
Frequently asked questions
- What is the meaning of restricted stock? Restricted stock is company equity given to employees or executives with conditions, like a vesting schedule, before it can be sold.
- What`s restricted stock Quizlet? Restricted stock is company shares given to employees or executives that have restrictions on when they can be sold, typically linked to vesting periods.
- What does restricted mean in shares? Restricted shares can’t be sold or transferred until certain conditions, like vesting, are met.
Benefits
Restricted stock grants shares to insiders with restrictions on sale or transfer until conditions are met.
Conclusion
Restricted stock gives equity to insiders but restricts when it can be sold.
