restricted security
- It's a type of security whose transfer or change in ownership registration is not freely permitted due to certain limitations
- The startup offered restricted security in their second fundraising round, which complicated matters for some investors.
- In the contract, it was clearly stated that the offered assets were considered as restricted security and could not be transferred freely.
- 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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