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
See restricted security.