restricted security

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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.

restricted security

A security that has not been registered with the SEC and therefore may not be sold publicly. These securities frequently enter portfolios of institutional investors through private placements and are sometimes registered at a later date. Also called letter bond, letter security, letter stock, unregistered security.

Restricted security.

Restricted securities are stocks or warrants that you acquire privately, through stock options or a corporate merger, rather than by buying them in the open market.

For example, you may receive restricted stock if you put money into a startup company.

If the company has not yet registered with the Securities and Exchange Commission (SEC) for an initial public offering (IPO), its securities cannot be transferred or resold until the issuing company meets the SEC registration requirements for publicly traded securities.

If you exercise stock options and buy stock at a reduced price, you may be required to hold those stocks for a period of time before liquidating them.

References in periodicals archive ?
Description of shares (including class), debentures or derivatives or financial instruments relating to shares Lancashire Holdings Limited ("LHL") Restricted Share Scheme Award and LHL Restricted Share Scheme Awards Bonus Deferral Plan
Tieto s Board of Directors has approved two new share-based incentive plans for key employees of Tieto and its subsidiaries, a Performance Share Plan 2015 and a Restricted Share Plan 2015.
A (as given below) under the Long-Term Incentive Plan, Deferred Bonus Plan and Restricted Share plan.
Meanwhile, Wells Fargo issued 27,937 restricted share rights to Atkins, 147,928 restricted share rights to Hoyt and 147,928 restricted share rights to Oman.
Can a restricted share contribute to COI if the recipient is not treated as owner of the share for federal tax purposes?
As a result, eight standard options may be traded for, say, two restricted shares or, perhaps better, one restricted share plus eight premium options.
NYSE AMEX: CTO) entered into a Restricted Share Award Agreement with John P.
This could be determined using an option-pricing model, such as the Black-Scholes model, where the conversion ratio of stock options to each restricted share might range from 2:1 to 5:1, depending on particularly the volatility of the company's stock price and the expected option term.
Restricted shares granted to the Advisor as long as ARCT is a non-traded REIT shall be capped such that: (i) total asset management fees paid over the life of the offering, plus (ii) the value of all shares of restricted stock to be granted under the terms of the Company's Restricted Share Plan will not exceed the amount of the asset management fee contemplated under the current advisory agreement, i.
PEQX is expected to gain in trading volume as venture capital participants list portfolio tail ends, and family office managers, angel investors, and others rebalance their restricted share portfolios.
First, the employees will be allowed to rescind outstanding restricted share awards and the Company will grant them stock appreciation rights.

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