what is restricted stock 
restricted stocks are unregistered shares of ownership in a corporation that are issued to company executives directors and other employees as part of their compensation restricted stocks are nontransferable and must be traded according to the relevant securities and exchange commission sec regulations the restrictions of these stocks usually relate to their vesting period which is when they can t be sold or transferred the restrictions are intended to discourage premature selling that might negatively affect the company and to provide stability at the firm by providing a benefit to employees who stay on for a certain amount of time restricted stock typically becomes available for sale under a graded vesting schedule that lasts several years restricted stock is called letter stock or section 1244 stock the part of the internal revenue code irc that covers them 