Restricted stock


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Restricted stock

Stock that must be traded in compliance with special SEC regulations concerning its purchase and resale. These restrictions generally result from affiliate ownership, M&A activity, and underwriting activity. Many firms are now using restricted stock as a reward for employees. The advantages to restricted stock are: employees get dividends, employees usually get voting rights, and employee gets something even if the stock price drops over the vesting period (whereas an option would be worthless).

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 ?
AMAG Pharmaceuticals announced that the Board of Directors of AMAG approved inducement awards to a new employee of an option to purchase 16,700 shares of common stock and 8,500, restricted stock units.
Release date- 02082019 - BURLINGTON - Flexion Therapeutics, Inc.(Nasdaq: FLXN) today announced equity inducement grants to 11 new employees consisting of an aggregate of 68,650 stock options and 11,525 restricted stock units.
Biopharmaceutical company Puma Biotechnology Inc (NASDAQ:PBYI) said on Thursday that the compensation committee of its board of directors has authorised the grant of inducement restricted stock unit awards to two new non-executive employees.
NORDIC BUSINESS REPORT-June 7, 2019-Genmab reports on grant of restricted stock units and warrants to employees
Biopharmaceutical company Puma Biotechnology Inc (NASDAQ:PBYI) said on Friday that its compensation committee's board of directors authorised the grant of inducement restricted stock unit awards to three new non-executive employees.
a biopharmaceutical company focused on the development and commercialization of innovative therapeutics, announced that on December 31, 2018, the Company granted stock options and restricted stock units to four new employees of the Company.
(NASDAQ: NOVT), a technology partner to medical and advanced technology equipment manufacturers, has acquired the remaining approximately 24% of the outstanding shares of Laser Quantum for an aggregate consideration of USD 45.7m in cash and restricted stock, the company said.
As part of an extensive company reorganization, Neuralstem recently disclosed voluntary salary reductions of senior management as well as a reduction in non-employee board member compensation from $200,000 per annum to $100,000 per annum, payable in options, restricted stock or restricted stock units.
Neuralstem recently disclosed voluntary salary reductions of senior management as well as a reduction in nonemployee board member compensation from $200,000 per annum to $100,000 per annum, payable in options, restricted stock or restricted stock units.
The inducement awards consist of an aggregate of 16,000 options to purchase shares of Millennial Media common stock granted to five new hires, 50,000 restricted stock units of Millennial Media common stock specifically negotiated in connection with the hire of another individual, and 350,000 restricted stock units of company stock specifically negotiated in connection with the hire of another individual.
International Resource News-January 20, 2015--Roxgold grants employee incentive stock options and Restricted Stock Units
BANKING AND CREDIT NEWS-January 15, 2014--Computershare upgrades online restricted stock platform

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