This generally refers to either insider stock or stock purchased in a private placement directly from the company. Restricted stock is sometimes acquired through a corporate reorganization or acquisition, in return for services, or purchased from an original shareholder or insider.
Restricted stock typically has a legend imprinted on the back or front of the stock certificate stating that the shares cannot be sold or transferred without either registration under the Securities Act of 1933 or an exemption from such registration, such as meeting the requirements of Rule 144.
