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 ?
Raisio Oyj (HEL:RAIVV), a producer of cereal products and animal feed, announced on Tuesday the decision by its board of directors, at its meeting held on 12 February 2018, to convert a total of 46,077 restricted shares (series K) into free shares (series V).
The Investor will be issued with 2,307,692 restricted shares of the company's common stock (a price of USD 0.
11 November 2013 -- Florida-based bank holding company BankUnited Inc (NYSE: BKU) said it has granted employment inducement awards in the form of restricted shares of the company's common stock to five new employees on November 7 2013 as required by New York Stock Exchange Listed company Manual Section 303A.
Under Smith's old working agreement, 53,075 restricted shares of Class A common stock were scheduled to vest on various dates through 2012.
83 to an employee's conversion or exchange of "fully vested" or "unrestricted" shares for restricted shares has been unclear.
As a result, eight standard options may be traded for, say, two restricted shares or, perhaps better, one restricted share plus eight premium options.
The award of the restricted shares was approved by the independent members of the Company's Board of Directors without stockholder approval, in accordance with and subject to the exception for an "inducement grant" as such term is defined in Section 711(a) of the NYSE Amex Company Guide.
M2 EQUITYBITES-February 26, 2018-Solar's board grants restricted shares to key employees
NORDIC BUSINESS REPORT-February 26, 2018-Solar's board grants restricted shares to key employees
The restricted shares will vest in equal installments on Jan.

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