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Restricted Stock

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Restricted Stock

Restricted stock, RSUs, and performance shares have become prominent forms of stock grant. Browse an overview of this section below, or explore the subtopics to the left.

In addition to the main areas about basic and advanced topics in all these types of grants, see the special subsections that are exclusively about restricted stock units and performance shares.

Selected Articles

Basics

The Great Benefits Of Restricted Stock

Podcast included! While restricted stock, restricted stock units, and performance shares don't offer the same upside as stock options, they have benefits you will appreciate once you understand their features.
Restricted Stock Units

Restricted Stock Units Made Simple (Part 1): Understanding The Core Concepts

Restricted stock units (RSUs) are the most popular alternative to stock options. This article explains RSUs and what you need to know about them.
Basics

VIDEO! Restricted Stock & RSUs (Part 1): Key Aspects To Know

Presented by the editor-in-chief of myStockOptions.com, this engaging video covers the fundamentals of restricted stock, restricted stock units (RSUs), and performance shares to help you make the most of these grants. This video covers key concepts, such as vesting schedules and understanding your grant's value. Running time: 4:37
Show More Selected Articles
Advanced

Ten Financial-Planning Rules You Should Know About Restricted Stock And RSUs This is premium content

While grants of restricted stock and RSUs are conceptually simple, financial planning for them can be complex. This article presents the essential financial-planning points that you should consider before your restricted stock or RSU grant vests.
Basics

Restricted Stock 101: Five Essentials Of Restricted Stock & RSUs This is premium content

While restricted stock and RSUs are relatively straightforward, they have technical aspects you must understand to make the most of them. Learn the essential facts of restricted stock and RSUs, including basic concepts, vesting schedules, and tax treatment.
Taxes

Restricted Stock Units Made Simple (Part 2): Taxation This is premium content

The taxation of RSUs generally resembles that of restricted stock but carries some important differences.
This is simply a selection of the many articles in this section.
Use the navigation to the left to explore all of the categories in this section.

Selected FAQs

Basics

What are the top 10 questions I should ask about my grant of restricted stock or RSUs?

You should know the answers to the following questions. Understanding the topics involved will help you make the most of your restricted stock/RSU grant and prevent costly mistakes...
Basics

My restricted stock will vest soon. What must I do and decide? This is premium content

You have some decisions but fewer than you would with stock options, which prompt a decision about exercise timing and, if you hold the shares, require cash for the exercise and taxes. By contrast, restricted stock and restricted stock units...
Restricted Stock Units

What are the top 10 questions I should ask about my grant of restricted stock or RSUs?

You should know the answers to the following questions. Understanding the topics involved will help you make the most of your restricted stock/RSU grant and prevent costly mistakes...
Show More Selected FAQs
Restricted Stock Units

What is the difference between restricted stock and restricted stock units (RSUs)? This is premium content

While they are siblings, they have important differences, as explained below and as shown by the chart. The traits of restricted stock units include the following...
Basics

What is restricted stock? Does it differ from restricted securities?

Don't confuse restricted securities and restricted stock. They are very different...
Basics

Does this website's content on restricted stock also apply to restricted stock units (RSUs)?

Generally, yes, with two exceptions. First, with RSUs you cannot...
Basics

Why do many companies grant restricted stock and RSUs instead of stock options? This is premium content

The compensation philosophies of companies are continually changing under the influence of many factors, from accounting rules to...
Basics

What advantages do restricted stock and RSUs have over stock options? How do the two grant types compare?

Restricted stock always has some value to you even when the stock price drops below the price on the date of grant...
Basics

Why do companies shift from granting stock options to granting restricted stock units, and then sometimes back again to granting at least some stock options? This is premium content

Surveys indicate that many companies use a variety of grants, including both stock options and restricted stock units (RSUs) in tandem. There are many possible reasons why a company might switch from options to RSUs...
Taxes

When and how is a grant of restricted stock or RSUs taxed?

The timing of taxation is different than that of stock options. You pay tax at the time the restrictions on the stock lapse. This occurs when...
Advanced

My restricted stock will vest soon. Should I sell the shares at vesting or hold them?

When restricted stock, restricted stock units, or performance shares vest, whether you sell or hold the shares depends on various factors. Some of them are under your control...
This is simply a selection of the many FAQs in this section.
Use the navigation to the left to explore all of the categories in this section.