Restricted Stock Option

In comparison with common stock Restricted Stock option is reaching a good position as its advantages are more  and it is really beckoning one to the unethical employees who has inner knowledge of the companies which is quite easy for them to buy or sell stock at a right time.The other name of the Restricted Stock Option is Restricted Securities or Letter Stock which are almost special and regular were the owners buy or sell the stock.The market fluctuation seems to be the risk factor regarding Restricted Stock Option which could not be avoided.The London Stock Exchange (LSE),. Shanghai Stock Exchange (SSE) and New York Stock Exchange (NSE) involves in this transaction.The owner of the stock has to wait until they reach milestone, they do not have rights to transfer the stock.

The person who work in the company usually buy this which pay the easy way for them to buy or sell it depending on the position of the company as they have inner knowledge right decision seems to be possible.Another thing to be noted is the company fix a milestone which is the certain target were the owner has to stay only after reaching milestone he can sell the stock or stay in it. But most of them never continue it as soon as they reach the milestone they sell it. They themselves restrict it this could be avoided to earn more money.To augment its advantage Dividend and voting rights make it more easier compared to common stock. In case of dividend the owner of the Restricted Stock Option can get the profit of the company. As owner of Restricted Stock option he can attend the annual meeting and can vote whom he like