Restricted Securities

Restricted Securities

The term used under Rule 144 for securities issued privately by the company, without the benefit of a registration statement. Restricted securities are subject to a holding period before they can be sold under Rule 144.

Restricted Security

A stock or right that one acquires through some means other than the open market. One may receive a restricted security through a merger or acquisition, private placement prior to an IPO, or sometimes through a stock option. A restricted security is not registered with the SEC and thus may not be sold publicly until registration has been made. It is less commonly called a letter security.
References in periodicals archive ?
Are concerned securities widely, but also restricted securities (association publications, trade, regional policy at the author, research centers and university laboratories, etc.
OTCQB: SAPX) ("Seven Arts" or the "Company") announced today that it has commenced negotiations for a corporate combination with a New York investor group which would result in the addition of substantial additional assets to the Company in return for its restricted securities.
The bill further provides that the securities may be offered and sold publicly and that the securities shall not be restricted securities within the meaning of the Federal securities laws.
A notice of the proposed sale of restricted securities or control securities under Rule 144 that must be filed with the SEC.
Mr Hodgson continued: 'This Memorandum is helpful in that it provides a potential safe harbour from the application of the provisions on restricted securities, if all of a number of conditions are satisfied.
Late last year, Tricord closed a $3m private placement of restricted securities and warrants, with Rod Canion, founder and former chief executive of Compaq Computer Corp, as the lead investor in the funding.
The Fund is subject to financial services sector risk, restricted securities risk, credit risk, interest rate risk, and call risk, among others.
Gawad is permitted under the lock-up agreement to (1) pledge the Restricted Securities as collateral in a loan transaction involving Dr.
Liberty Global," "LGI," or the "Company") (NASDAQ: LBTYA) (NASDAQ: LBTYB) (NASDAQ: LBTYK) today announced that its $935 million aggregate principal amount of 4 1/2% Convertible Senior Notes due 2016 (CUSIP: 530555 AA9; ISIN: US530555AA94) no longer include a restricted securities legend.
In addition to trading LP interests, SecondMarket operates markets for auction-rate securities, bankruptcy claims, restricted securities, and blocks in small capitalization companies.
Rule 144 allows for the public resale of restricted securities only if certain holding period and other conditions are satisfied.
Currently, SecondMarket serves as the marketplace for auction-rate securities, bankruptcy claims, and illiquid blocks and restricted securities in public companies.

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