Restricted Stock

Restricted Stock is company stock issued to an employee or founder that is subject to restrictions such as vesting, company repurchase rights, or transfer limitations until certain conditions are met. In startups, Restricted Stock is often used for founder equity grants early on, and Restricted Stock recipients commonly consider filing an 83(b) election to potentially improve tax treatment.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.