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).
Barry Goldsmith
| APA | Barry Goldsmith. (2010). restricted stock. Retrieved September 24, 2026, from http://smartdefine.org/restricted_stock/definitions/1162416 |
| Chicago | Barry Goldsmith. 2010. "restricted stock" http://smartdefine.org/restricted_stock/definitions/1162416 (accessed September 24, 2026). |
| Harvard | Barry Goldsmith 2010, restricted stock, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/restricted_stock/definitions/1162416>. |
| MLA | Barry Goldsmith. "restricted stock" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/restricted_stock/definitions/1162416> |