Letter stock is a category of stock that derives its name from an inscription on the face of the stock certificate, indicating that the shares have not been registered with the Securities and Exchange Commission (SEC) and, therefore, cannot be sold to the general public.
Restricted securities are securities acquired from an issuer in a nonpublic transfer that have sales limitations because they were not part of a public offering and didn't adhere to the Securities Act of 1933.
Unregistered stock, also known as letter stock, refers to shares of a company that have not been registered with the Securities and Exchange Commission (SEC) and cannot be traded freely on public stock exchanges.
