Restricted Stock
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Restricted Stock

Restricted Stock

Restricted stock, restricted stock units (RSUs), and performance shares are not as simple as they look. Understand your grant details, the tax treatment, and financial planning for vested shares. 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

Restricted Stock Units

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

Restricted stock units (RSUs) are now the most commonly granted type of equity award. This article presents what you need to know about RSUs and includes a video on key aspects of both RSUs and their sibling restricted stock.
Restricted Stock Units

Sell Or Hold RSU Shares At Vesting? 3 Approaches To Consider This is premium content

When your restricted stock units (RSUs) vest, you have a lot of wealth tied up in one stock. How many of your RSU shares should you sell? How many should you hold? This article presents ways to approach your best answer to those key financial-planning questions.
Restricted Stock Units

Financial Planning With Restricted Stock Units: 3 Key Questions This is premium content

If you own restricted stock units (RSUs), you need to plan for what you will do when the shares vest. Whether you hold or sell, being prepared will help you be proactive instead of reactive and make the most of the opportunity RSU grants provide.
Show More Selected Articles
Basics

The Great Benefits Of Restricted Stock And Restricted Stock Units (RSUs)

Podcast and video included! Receiving a grant of restricted stock or restricted stock units (RSUs) is a reason to celebrate. This article explains the value to you.
Restricted Stock Units

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
Restricted Stock Units

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

Video included! 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

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

You should know the answers to the questions in this FAQ's checklist and be familiar with the topics presented in the related video. Understanding these will help you make the most of your restricted stock/RSU grant and prevent costly mistakes...
Taxes

Video included! 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...
Taxes Advanced

UPDATES! What are the biggest mistakes with restricted stock or RSUs that I can make on my tax return, and how can I avoid them? This is premium content

It is all too easy to make costly tax-return errors that attract unwanted IRS attention. Learn how to prevent mistakes...
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Basics

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

When vesting occurs and the restriction on the shares lapses, you have some choices but fewer than you would with stock options, which require decisions about exercise timing and method. Restricted stock and restricted stock units do not...
Basics

What are restricted stock and restricted stock units (RSUs), and how do they differ?

While restricted stock and RSUs are siblings, they have important differences, as explained by this FAQ, which includes a quick-reference table clearly presenting the comparison...
Basics

Can restricted stock, RSUs, and performance shares go underwater? This is premium content

Not in the way stock options can. Restricted stock is worth the full market value of the stock when it vests (or, with restricted stock units, when shares are delivered). It does not matter if...
Basics

Once my restricted stock vests, is it mine forever? This is premium content

After restricted stock vests, it becomes stock that you own outright, like shares bought on the open market. However, as with any stock you own, you can lose the shares...
Taxes

My restricted stock grant is about to vest. Any way to reduce the tax impact? This is premium content

Usually not directly with the vesting. However, you can plan around the higher income. Here are a few ideas to consider...
Basics

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

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

Are restricted tokens similar to restricted stock? This is premium content

While the two grant types have some similarities, the worth of restricted tokens depends on the value of an underlying cryptocurrency, not the company’s stock price. Tokens are attracting attention as a form of compensation because...
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...
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.
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