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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
ENPNewswire-August 22, 2019--Avino Announces Restricted Share Unit and Option Grant
- July 30, 2019) - Braingrid Limited (CSE: BGRD) ("Braingrid" or the "Company"), a global provider of cultivation analytics using its affordable, scalable and easy-to-deploy sensor platforms for precision agriculture, wishes to announce that pursuant to its restricted share unit plan, the Company has granted a total of 2,475,000 restricted share units ("RSUs") to its directors and certain employees.
BANKING AND CREDIT NEWS-December 17, 2018-Australis Capital implements restricted share unit grant program
(11) According to Ruberg, if stock options or restricted stock are granted with the primary purpose of compensation for past services, then the entire stock option or restricted share grant, whether vested or unvested, is deemed earned as of the day it is granted and is considered a marital asset.
As a result, eight standard options may be traded for, say, two restricted shares or, perhaps better, one restricted share plus eight premium options.
In connection with the acquisition, CharterMac will establish a restricted share program and will broadly issue to employees of RCC, other than the RCC Principals, $15 million of CharterMac Common Shares.
M2 EQUITYBITES-August 22, 2019-Avino grants restricted share units and stock options to directors, officers, employees and consultants
Global Banking News-August 22, 2019-Avino grants restricted share units and stock options to directors, officers, employees and consultants
Morin, whose 58,059 restricted share units in EXFO totaling approximately C$225,850 vested earlier this month, opted to hold onto his shares and pay the related income tax charges.

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