Restricted stock is shares of stock awarded to managers that cannot be redeemed unless the manager is currently working for the firm.

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Restricted stock can be awarded to employees, and while it may have vesting conditions, it does not require the employee to be currently working for the firm at the time of redemption. Vesting conditions often include time-based service requirements or performance milestones, but once vested, the employee owns the stock outright, even if they leave the company.

Restricted Stock Is Shares of Stock Awarded to Managers That