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Restricted Stock
A type of stock that is not fully transferable until certain conditions have been met, typically used as part of employee compensation packages.
Transferable
The quality of an asset that allows it to be passed or conveyed from one entity to another.
Forfeiture
The loss of any right, property, or money, usually because of a breach of legal obligation or failure to fulfill some condition.
Financial Covenant
A clause in a loan agreement that requires the borrower to fulfill certain financial conditions, aiming to protect the lender’s interests by monitoring the financial performance and health of the borrower.
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