Restricted Stock
Insider holdings that are under some other kind of sales restriction. Restricted stock must be traded in compliance with special SEC regulations.
Also referred to as "Letter Stock." Investopedia Says:
Insiders are given restricted stock after merger and acquisition activity, underwriting activity, and affiliate ownership in order to prevent premature selling that might adversely affect the company. Restricted stock cannot be sold without registration with the SEC (under the Securities Act of 1933)or some other special exemption. Related Terms:
Authorized Shares
Discount For Lack Of Marketability - DLOM
Float
Initial Public Offering - IPO
Outstanding Shares
Private Placement
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