Restricted stock units (RSUs):
A) are a grant valued in terms of a set number of shares of company stock.
B) are reported as a liability if payable in shares rather than cash.
C) are recorded based on a value estimated by a restricted stock valuation model.
D) represent shares issued at the date of grant that must be returned if the recipient fails to satisfy the vesting requirement.

Question

Quizplus · Accepted Answer

Restricted stock units are grants that are valued in terms of a set number of shares of company stock. The vesting period for these units can be time-based, performance-based, or a combination of both. Upon vesting, the units are converted into actual shares of company stock that can be sold or held by the recipient.

Restricted Stock Units (RSUs)