Restricted Stock

Description and Definition of Restricted Stock

Stock owned by an employee of a company that has limits on its transferability. If you receive restricted stock you do not need to include its value in excess of the amount you paid for it in your income. However, when the restrictions are lifted and you are free to sell or transfer your stock you will need to include its value in your taxable income.

Resources

See Also

Further Reading

• Restricted Stock in the West's Tax Law Dictionary
• Restricted Stock in “A Dictionary of Taxation”