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Restricted stock

Restricted stock denotes a grant of company stock subject to restrictions on sale and to a risk of forfeiture until the grant has vested. The vesting schedule is usually based on the length of employment at the company or the achievement of an individual or corporate performance goal. Restricted stock normally vests in increments over several years. During the restricted period, dividends or dividend-equivalent rights may be paid, and award-holders may have voting rights. See also the section on restricted stock and restricted stock units at myStockOptions.com.