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Restricted Securities |
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Restricted SecuritiesThe term used under Rule 144 for securities issued privately by the company, without the benefit of a registration statement. Restricted securities are subject to a holding period before they can be sold under Rule 144.Restricted Securities Similar MatchesRestrictedRestrictedPlaced on a list that dictates that the trader may not maintain positions, solicit business, or provide indications in a stock, but may serve as broker in agency trades after being properly cleared. Traders are so restricted due to investment bank involvement with the company on nonpublic activity (i.e., mergers and acquisitions defense), affiliate ownership, or underwriting activities; signified on the Quotron by a flashing "R." A restricted list and the stocks on it should never be conveyed to anyone outside of the trading areas, much less outside the firm. See: Grey list. Restricted tradeRestricted tradeTrade that is restrained in some fashion by tariffs, transport costs, or NTBs. Restricted Stock AwardRestricted Stock AwardGrants of shares of stock subject to restrictions on sale and risk of forfeiture until vested by continued employment. Restricted stock typically vests in increments over a period of several years. Dividends or dividend equivalent rights may be paid, and award holders may have voting rights, during the restricted period. Restricted surplusRestricted surplusA portion of retained earnings not allowed by law to be used for the payment of dividends. Restricted accountRestricted accountA margin account without enough equity to meet the initial margin requirement that is restricted from any purchases until the requirement is fulfilled. Further SuggestionsPerformance Accelerated Restricted Stock Award Plans (PARSAPs)Restricted stock |
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