UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFKGOMalley Big gold star, 5000 posts Old School Fool Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2209  
Subject: Re: Glossary Addition Please Date: 6/7/2001 10:33 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I am searching for the definition of a "restricted stock".


Hi,

Restricted stock is stock that has restrictions on selling. Typically it is stock issued to employees through stock options prior to the company going public.

http://www.investopedia.com/terms/r/restrictedstock.asp
"Generally refers to stock purchased in a private placement directly from an issuer before the company is public. It may also have been acquired through a merger or acquisition.

Restricted stock cannot be sold without registration under the Securities Act of 1933 or through a special exemption."

Rule 144 covers Sale of this stock.

http://www.investopedia.com/terms/f/form144.asp
"Form 144
Also known as Rule 144, this is a form which must be filed with the SEC when an executive officer, director or affiliate of a company places an order to sell that company's stock.

There are five basic requirements to sell under 144:
-The form must be filed properly.
-Adequate current public information must be available. For example, required reports such as the 10K and 10Q forms must have been filed with the SEC.
-Volume limitations have to be met. One limitation is the sale must not be greater than 1% of outstanding shares.
-The transaction must be made by a stockbroker in accordance with certain procedures and rules.
-If the securities are restricted they cannot be sold until one year after the date the affiliate paid the entire purchase price."

Fool On,

Keith O'Malley
TMF KGOMalley
Interesting Links: http://boards.fool.com/Message.asp?mid=15120702
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement