Restricted Stock
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Restricted Stock

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 And RSUs

Podcast included! Receiving a grant of restricted stock or restricted stock units (RSUs) from your company is a reason to celebrate. This article explains why these grants are so very valuable.
Restricted Stock Units

NEW! 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.
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
Show More Selected Articles
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, but they work very differently. Also, while grants of restricted stock and grants of RSUs are somewhat similar, they too differ in key ways, so it is important to understand RSUs in their own right. This article series explains the basic facts of RSUs, including vesting and tax treatment, that you must know to make the most of an RSU grant.
Taxes Advanced

Living And Working In Multiple States: Challenges For Mobile Employees In The USA This is premium content

Podcast included! Moving between US states, whether to relocate permanently, travel for business, or retire, can involve tax complications for people who have stock compensation. This article presents the tax issues that you may encounter when you leave your home office and cross a state line.
Advanced

10 Financial-Planning Rules For 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.
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...
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...
Restricted Stock Units

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

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...
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Basics

My restricted stock 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...
Taxes

NEW! 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

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?

It's not easy to determine which type of grant is better for you...
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 Advanced

UPDATES! When my restricted stock or RSUs vest, will I need to make estimated tax payments? This is premium content

At a minimum, when the restricted stock vests your company will withhold taxes at the required federal withholding rate for...
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.