Homework question, need quick answer!

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ebec11
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07 Jun 2009, 7:42 pm

That's why it's here, sorry :?
Can anybody tell me what a restricted stock unit is in as simplistic terms as possible. And only copy and paste the definition if it's actually clear, I don't need to see anymore gibberish definitions. I know most of you probably won't know this, but I REALLY need the definition and I will be indebted to that person!



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07 Jun 2009, 7:46 pm

http://en.wikipedia.org/wiki/Restricted_Stock_Unit


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ebec11
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07 Jun 2009, 7:56 pm

Wikipedia just confused me even more about what a restricted stock is though.



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08 Jun 2009, 2:10 am

I hope this is in time.

What class is this for? Some sort of economics class?

I'll try to make this simple. If we're talking stock stock, like the stock that is traded on the New York Stock exchange, then a restricted stock unit would basically be one share of stock that cannot be sold by the owner of the stock until some sort of condition/restriction on the stock is met.

For example let's say a company's CEO gets paid with some restricted stock units. The condition on the restricted stock he's paid with is that the company would grow by a certain amount by next year. This means the CEO could not sell the stock for money until a year had passed and the company had grown by at least the amount specified on the stock. It would basically be an incentive. If the the company does well, the stock would probably increase in price and the CEO could sell the stock for a lot of money. If the company didn't do well the CEO would get nothing because he wouldn't be able to sell the stock.


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