Restricted Stock Unit

A restricted stock unit (RSU) is a grant to an employee valued in terms of company stock. No actual stock is issued at the time of the grant. Instead, the grant of stock or its cash equivalent is deferred until the restricted stock units vest, which is based upon a set date or an occurrence described in a restricted stock unit plan or agreement. Once the vesting requirement is satisfied, the company ordinarily distributes the shares or cash equivalent of the number of shares to the employee; however, the distribution may be deferred in some plans.

Generally, if an employee's employment terminates before the employee has satisfied the vesting requirement, the restricted stock units are forfeited. 

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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