What are restricted shares? Who controls these?

Answer 1

Companies issue restricted stock to employees. The restriction is usually based on time with the company. After a certain amount of time, the stock gets transferred to the employee and becomes unrestricted. Before the transfer, the company controls it. After the transfer, the employee does.

Answer 2

Restricted shares are issued to large institutional investors, and some company insiders. They are restircted in the sense that the holder may not sell them on the open market. There are typically 2 ways that limit their sale.

1) Must hold for specific time frame, usually a year or more
2) Must hold until stock hits certian value

Because of these restrictions, they are usually sold at a discount. Also, a company usually retains the right of first refusal. Meaning that when the shares become elegible for sale, they must offer them to the comany first, if the company refuses, then they may sell them on the open market.

Answer 3

dont know if its the same but this is what i found out for you
Restricted stock, also known as letter stock or restricted securities, refers to stock of a company that is not fully transferable until certain conditions have been met. Upon satisfaction of those conditions, the stock becomes transferable by the person holding the award. Typically the conditions are a period of time. However, those restrictions can also be some sort of performance condition. Restricted stock is becoming a more prominent form of employee compensation, particularly to executives. It has come to prominence as stock options have fallen out of favor after the excesses of the stock market in the early 21st century

Answer 4

Who controls the restricted shares? The one that they are restricted to. I had stock in a little company that had a better imaging system for CAT scans and MRIs. The bulk of the company's money was in restricted shares restricted to the owner who invented the system. He needed a little more cash to sell the version, so he cooked up some common stock and released it to idiots like me who thought I could profit from his new and improved invention, which was just a little different from the new and improved upgrade that GE installed on their equipment. Oh, well....