Restricted Stock
/ˈrestrɪktɪd stɒk/
Definitions
- (n.) Shares granted to employees or directors that are subject to restrictions on transfer and forfeiture until certain conditions are met.
The company awarded restricted stock to key employees as part of their compensation package.
Forms
- restricted stock
- restricted stocks
Related terms
See also
Commentary
Restricted stock differs from stock options in that the recipient owns the shares immediately but may lose them if conditions are not satisfied.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.