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.