| unregistered stock, as that issued privately as compensation to corporate executives subject to special conditions. |
Restricted Stock
Insider holdings that are under some other kind of sales restriction. Restricted stock must be traded in compliance with special SEC regulations.
Investopedia Commentary
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 Links
Stock Basics Tutorial
See also: Authorized Shares, Float, IPO, Outstanding Shares, Private Placement, Stock
Also spelled: restricted stocks, restricted security