restricted security

Definition of "restricted security"
  1. It's a type of security whose transfer or change in ownership registration is not freely permitted due to certain limitations
How to use "restricted security" in a sentence
  1. The startup offered restricted security in their second fundraising round, which complicated matters for some investors.
  2. In the contract, it was clearly stated that the offered assets were considered as restricted security and could not be transferred freely.
  3. To comply with the law, the company had to clearly specify whether it was issuing a common stock or a restricted security.

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