restricted security

(redirected from Unregistered Securities)

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 ?
In its decision denying Black Cell's motion, the SEC said KropCoins are unregistered securities that are being offered and sold within the Philippines through the joint efforts of respondents.
The Krops Tokens and/or KropCoins are unregistered securities that are being offered and/or sold within the Philippines through the joint efforts of respondents,' the SEC said.
Muehler with operating an unregistered broker-dealer, facilitating an unregistered securities offering, and defrauding small businesses, while promising to help them raise money from investors.
Montroll, who is also facing an SEC lawsuit alleging he and the company ran an unregistered securities exchange that defrauded users, is charged in a criminal complaint with perjury and obstruction of justice.
are accused of selling unregistered securities, acting as an unregistered investment adviser and fraud.
22 billion from over 8,400 unsuspecting investors nationwide through fraudulent unregistered securities offerings.
The indictment also charges Uresti with five substantive counts of wire fraud; two counts of securities fraud; one count of engaging in monetary transactions with property derived from specified unlawful activity; and one count of being an unregistered securities broker.
The ASD staff is seeking fines of $10,000 each for six instances of securities fraud and four instances of selling unregistered securities.
and TelexFREE LLC, with the fraudulent offer and sale of unregistered securities.
The securities and banking regulators of New Hampshire have issued a cease and desist order to Upper Valley Commercial Corp, accusing it of selling and distributing unregistered securities without a license.
Jason Coombs previously provided voluntary disclosures relating to general solicitation of the company's unregistered securities in compliance with JOBS Act Rules such as the company's "Investor Days" social media and JOBS-ACT.
A California agent lost his insurance license after selling unregistered securities to seniors.