Which is true about restricted stock: a. These grants are immediately vested. b. These grants are...

Which is true about restricted stock:

a.	These grants are immediately vested.
b.	These grants are generally in the form of convertible preferred stock.
c.	It is not dilutive.
d.	Any dividends paid will be received by the employee.

Solutions

Expert Solution

Restricted stock is a form of executive compensation offered by corporations.
They are most common in established companies that want to motivate employees by giving them an equity stake.
Restricted stock represents actual ownership of shares but come with conditions on the timing of their sale.
The restrictions are intended to deter premature selling that might adversely affect the company, as well as to motivate managers to align their interests with the future of the company.
Restricted Stock Units (RSUs) are not eligible for dividend payments until the point in time when they have been converted to stock and distributed to employees. This usually coincides with a vesting event and can occur much later than the timing of when a RSAs is issued/eligible for dividends

There fore answer b is correct

These grants are generally in the form of convertible preferred stock.

jeff jeffy answered 1 year ago

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