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Restricted Stock Units | Definition (Advantages & Disadvantages)

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In this video, we will study definition of Restricted Stock Units(RSU) along with its advantages and disadvantages. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐑𝐞𝐬𝐭𝐫𝐢𝐜𝐭𝐞𝐝 𝐒𝐭𝐨𝐜𝐤 𝐔𝐧𝐢𝐭𝐬(𝐑𝐒𝐔)? ---------------------------------------------------------------- Restricted stock units or RSU are one of the most popular methods of compensation for equity used by workers for compensation based on stocks. 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐑𝐞𝐬𝐭𝐫𝐢𝐜𝐭𝐞𝐝 𝐒𝐭𝐨𝐜𝐤 𝐔𝐧𝐢𝐭𝐬(𝐑𝐒𝐔) --------------------------------------------------------------------- If the shares or limited availability units are delivered to the workers on the date of transfer, they will be taxed. 𝐕𝐚𝐫𝐢𝐨𝐮𝐬 𝐌𝐞𝐭𝐡𝐨𝐝𝐬 𝐭𝐨 𝐏𝐚𝐲 𝐓𝐚𝐱 --------------------------------------------------- #1 - WITHHOLD-TO-COVER #2 - CASH #3 - SELL-TO-COVER 𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬 𝐨𝐟 𝐑𝐞𝐬𝐭𝐫𝐢𝐜𝐭𝐞𝐝 𝐒𝐭𝐨𝐜𝐤 𝐔𝐧𝐢𝐭𝐬(𝐑𝐒𝐔) --------------------------------------------------------------------------- #1 - Possible Reduced Taxes #2 - Deferral of Share Issuance #3 - Economy #4 - Tax Deferrals #5 - Friendly Foreign Tax 𝐃𝐢𝐬𝐚𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬 𝐨𝐟 𝐑𝐞𝐬𝐭𝐫𝐢𝐜𝐭𝐞𝐝 𝐒𝐭𝐨𝐜𝐤 𝐔𝐧𝐢𝐭𝐬(𝐑𝐒𝐔) ------------------------------------------------------------------------------- #1 - No right to vote #2 - Dividends not available #3 - No Section 83(b) Election 𝐑𝐞𝐬𝐭𝐫𝐢𝐜𝐭𝐞𝐝 𝐒𝐭𝐨𝐜𝐤 𝐔𝐧𝐢𝐭𝐬(𝐑𝐒𝐔) 𝐯𝐬 𝐒𝐭𝐨𝐜𝐤 𝐎𝐩𝐭𝐢𝐨𝐧𝐬 𝐊𝐞𝐲 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞𝐬 -------------------------------------------------------------------------------------------------------- #1 - Date of Grant #2 - Price of Exercise #3 - Vesting #4 - The Right of Shareholders #5 - 409A Treatment #6 - Settlement #7 - Type of payment after settlement If you want to know more about 𝐑𝐞𝐬𝐭𝐫𝐢𝐜𝐭𝐞𝐝 𝐒𝐭𝐨𝐜𝐤 𝐔𝐧𝐢𝐭𝐬(𝐑𝐒𝐔) , you can visit the 𝐥𝐢𝐧𝐤 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐝 𝐡𝐞𝐫𝐞:-https://www.wallstreetmojo.com/restricted-stock-units-rsu/ Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
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