RSD-6: The Expected Holding Period Premium for Restricted Stock Investors Is Caused by Incremental Risk Relative to Publicly Traded Shares of Issuers

This sixth post in a series on restricted stock discounts begins and ends by referencing all previous posts. The focus today is on the expected holding period premium, the key difference between restricted shares and otherwise identical publicly traded shares of restricted stock issuers. We discuss the reasons for restricted stock discounts and illustrate the calculation of expected holding period premiums implied by a sample restricted stock transaction.