what are escrowed shares 
escrowed shares are shares held in an escrow account secured by a third party pending the completion of a corporate action or an elapse of time leading up to an event shares are escrowed in three common cases understanding escrowed sharesescrow is a process whereby money or a financial asset is held by a third party on behalf of two other parties the assets or funds that are held in escrow remain there and are not released until all of the obligations outlined in the agreement are fulfilled escrow reduces the risk in a transaction by having a third party hold assets which prevents one party from having to pursue the other party for the funds or assets the release of escrowed shares can depress investors shares and significantly affect share price 1in stock transactions the equity shares are held in escrow essentially a holding account until a transaction or other specific requirements have been satisfied many times a stock issued in escrow will be owned by the shareholder however the shareholder may be prevented from selling the stock immediately or may have limited access to selling the shares 