restricted stock

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Shares in a company, usually held by selected employees, that are not owned outright by the holder until a stated condition is fulfilled. This may be a time limit (i.e. the employee must remain with the company for a specified number of years) or an individual or collective performance target. Restricted stock has become a popular alternative to share option schemes. See also share incentive scheme.

Subjects: Financial Institutions and Services — Accounting.

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