Employees who receive compensation in the form of Blank (1) stock do not have to pay for it, but forfeit ownership if they quit before the (2) date.

Respuesta :

Employees who receive salary in the form of restricted stock are not required to pay for it, but if they leave their job before the vesting date, they lose ownership.

How Does Restricted Stock Work?

Unregistered pieces of ownership in a firm that are given to corporate affiliates, like executives and directors, are referred to as restricted stock. Non-transferable restricted stock must be traded in accordance with specific Securities Exchange Commission (SEC) rules.

Do limited stocks work well?

You can receive firm shares from your employer through restricted stock units (RSUs) .RSUs almost always have some value, despite the stock price falls significantly. Before you can get the underlying shares, RSUs must vest. Vesting normally stops when a job is terminated.

To know more about restricted stocks visit :

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