Definitions for "Restricted Shares"
shares that cannot be traded in the public markets.
Shares acquired in a private placement are considered restricted shares and may not be sold in a public offering absent registration, or after an appropriate holding period has expired. Non-affiliates must wait one year after purchasing the shares, after which time they may sell less than 1% of their outstanding shares each quarter. For affiliates, there is a two-year holding period.
Shares of stock usually obtained in a private placement or owned by an insider where their resale has certain restrictions.