Restricted stock is
A) a special type of stock that is not transferable from the current holder to others until specific conditions are satisfied.
B) a special type of stock that can be converted into corporate bonds after a specific amount of time has elapsed.
C) a special type of stock that is a result of offering an employee stock ownership plan.

Question

Quizplus · Accepted Answer

Restricted stock is a form of stock compensation to employees that is subject to certain restrictions, including a vesting period. During this period, the stock cannot be transferred until specific conditions, typically related to employment status or performance milestones, are met.

Restricted Stock Is