letter stock


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Related to letter stock: Restricted stock

Letter stock

Privately placed common stock, so-called because the SEC requires a letter from the purchase stating that the stock is not intended for resale.

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.

letter stock

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preventing acquisition of letter stock tracking passive assets), their potential application may inadvertently extend to active joint ventures or other NRE equity investments in which there is no tax policy reason for the rules applying.