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Stevie recently received 1,000 shares of restricted stock from her employer, Nicks Corporation, when the share price was $8 per share. Stevie's restricted shares vested three years later when the market price was $11. Stevie held the shares for a little more than a year and sold them when the market price was $16. Assuming Stevie made a section 83(b) election, what is the amount of Stevie's ordinary income with respect to the restricted stock?
Mean
The average value obtained by adding all the data points in a set together and then dividing by the number of data points.
Standard Normal Curve
A symmetric bell-shaped curve that represents the distribution of many types of data where the mean is 0 and the standard deviation is 1.
Z-score
An index quantifying the position of a value relative to the average value in a dataset, expressed as the amount of standard deviations away from this mean.
Percentile
A value below which a given percentage of observations in a group of observations falls, used to understand and interpret data distributions.
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