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Restricted Stock vs Share Repurchases vs Stock Option

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What is the difference between Restricted Stock, Share Repurchases, Stock Option?

Will each of these transactions have a direct effect on the company financial situation?

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Solution Summary

Two paragraphs explaining in everyday language the impact of restricted stock, share repurchases, and stock options on the financial situation of a company.

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What is the difference between Restricted Stock, Share Repurchases, Stock Option?

Restricted stock is stock that cannot be resold due to restrictions but is actually owned by the investor. Share repurchases are shares owned by investors that are repurchased by the issuing firm and therefore are no longer in circulation (traded). A stock option is the option to purchase shares under some condition (price, ...

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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