restricted stock

Restricted stock is stock purchased from the issuer or from a person in a controlled relationship to the issuer in a nonpublic or private transaction. The right to sell restricted stock is limited by provisions in the Securities and Exchange Act. American Banker Glossary
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stock that must be traded in compliance with special SEC regulations concerning its purchase and resale. These restrictions generally result from affiliate ownership, M&A activity, and underwriting activity. Many firms are now using restricted stock as a reward for employees. The advantages to restricted stock are: employees get dividends, employees usually get voting rights, and employee gets something even if the stock price drops over the vesting period (whereas an option would be worthless). Bloomberg Financial Dictionary

Financial and business terms. 2012.

Look at other dictionaries:

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  • Restricted Stock — Insider holdings that are under some other kind of sales restriction. Restricted stock must be traded in compliance with special SEC regulations. These regulations are outlined under Section 1244 of the Internal Revenue Code. Also referred to as… …   Investment dictionary

  • restricted stock — unregistered stock, as that issued privately as compensation to corporate executives subject to special conditions. * * * …   Universalium

  • restricted stock — unregistered stock, as that issued privately as compensation to corporate executives subject to special conditions …   Useful english dictionary

  • restricted stock unit — (RSU) USA A compensatory award granted by a company to an employee or other individual performing services for the company. A RSU represents a promise by the company to transfer a share of the company s stock or a cash payment equal to the value… …   Law dictionary

  • restricted stock units — restricted stock unit (RSU) USA A compensatory award granted by a company to an employee or other individual performing services for the company. A RSU represents a promise by the company to transfer a share of the company s stock or a cash… …   Law dictionary

  • restricted stock award — Grants of shares of stock subject to restrictions on sale and risk of forfeiture until vested by continued employment. Restricted stock typically vests in increments over a period of several years. Dividends or dividend equivalent rights may be… …   Financial and business terms

  • restricted stock units — Similar to restricted stock. However, the unit represents a promise that employees will receive stock in the future. The units do not pay dividends until the stock is vested. Bloomberg Financial Dictionary …   Financial and business terms

  • Performance Accelerated Restricted Stock Award Plans — ( PARSAPs ) Also known as performance accelerated restricted stock ( PARS ) and time accelerated restricted stock award plans ( TARSAPs ). Grants of restricted stock or restricted stock units which may vest early upon attainment of specified… …   Financial and business terms

  • Stock selection criteria — is a strategy in which an analyst or investor uses a systematic form of analysis to determine if a particular stock constitutes a good investment which should be added to their portfolio. The objective of stock selection criteria is maximizing… …   Wikipedia

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