Business Pitch Dictionary by pitch.dog
Founder & employee equity · Working

Restricted stock

Also called: restricted shares

ELI5

Shares that can still be forfeited or repurchased until conditions are met.

Used in conversation

“The founder received restricted stock subject to vesting.”

Definition

Shares issued subject to restrictions or repurchase rights that lapse over time or conditions.

Here “Restricted stock” means: Shares issued subject to restrictions or repurchase rights that lapse over time or conditions.

Pitch context

You will see “Restricted stock” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches founder & employee equity.

Why it matters: In founder & employee equity, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.