Publicly-traded companies may grant employees a variety of stock-based compensation. The most common forms of shared-based compensation are restricted stock awards, restricted stock units, stock options, share appreciation rights, and employee share purchase plans. A restricted stock award grants stock to an employee; while ownership of the shares is transferred into the employee's name on the grant date, the employee isn't free to sell or transfer the shares until the shares have vested (vesting usually takes place after a certain period of employment has been completed, although there are sometimes additional performance or market conditions). A restricted stock unit grants an employee the right to receive stock (and sometimes cash in lieu of stock) once the restricted stock unit vests. A restricted stock unit differs from a restricted stock award in that a restricted stock unit doesn't transfer legal ownership of the share to the employee until the restricted stock …
