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Definition of 'Forfeited Share'
A share in a company that the owner loses (forfeits) by failing to meet the purchase requirements. Requirements may include paying any allotment or call money owed, or avoiding selling or transferring shares during a restricted period. When a share is forfeited, the shareholder no longer owes any remaining balance, surrenders any potential capital gain on the shares and the shares become the property of the issuing company. The issuing company can re-issue forfeited shares at par, a premium or a discount as determined by the board of directors.
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Investopedia explains 'Forfeited Share'
In certain cases, companies allow executives and employees to receive a portion of their cash compensation to purchase shares in the company at a discount. This is commonly referred to as an employee stock purchase plan. Typically, there will be restrictions on the purchase (i.e. stock cannot be sold or transferred within a set period of time after the initial purchase). If an employee remains with the company and meets the qualifications, he or she becomes fully vested in those shares on the stated date. If the employee leaves the company and/or violates the terms of the initial purchase he or she will most likely forfeit those shares.
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Search results for 'Forfeited Share'
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http://www.investopedia.com/articles/optioninvestor/09/expensing-esos.asp
... Whenever the options are forfeited or the options expire out of the money, the expensed
value at grant will be canceled and there will be no expense against ...
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http://stocks.investopedia.com/stock-analysis/2009/4-Stocks-Berkshire-Hathaway-Recently-Bought-BRK.A-WFC-TRV-XOM-RSG1203.aspx
... Along the way, like so many other banks, it forfeited its dividend, which currently
pays ... over 10 million shares to his already mammoth 300 million share holding ...
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http://www.investopedia.com/articles/optioninvestor/09/get-more-out-of-your-esos.asp
... The time premium would be $6,460. (Had the assumed volatility been lower, the amount
forfeited would be lower.) The $6,460 would be forfeited back to the ...
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http://www.investopedia.com/articles/retirement/05/053005.asp
... The assets in defined-contribution plans are likely forfeited (returned to the plan ...
it to your attorney, executor or other party who will share the information ...
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http://www.investopedia.com/university/employee-stock-options-eso/eso1.asp
... no tax offset from the loss of time or extrinsic value on the share of the ... value
known as time value is also present, a value that is forfeited upon exercise. ...
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http://financialedge.investopedia.com/financial-edge/1110/5-Ways-To-Buy-A-Used-Car.aspx
... 3. Government Auctions Thousands of seized, surplus and forfeited cars each
month are sold at online and live auction venues. These ...
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http://www.investopedia.com/articles/forex/05/060205.asp
... levels. Note that this may result in forfeited gains. Use ... Note, however, that
this may also result in forfeited gains. Conclusion Anyone ...
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http://www.investopedia.com/slide-show/5-ways-to-buy-a-used-car
... ins. 3. Government Auctions. Thousands of seized, surplus and forfeited
cars each month are sold at online and live auction venues. ...
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http://www.investopedia.com/slide-show/5-ways-to-buy-a-used-car/bottom-line.aspx
... ins. 3. Government Auctions. Thousands of seized, surplus and forfeited
cars each month are sold at online and live auction venues. ...
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http://www.investopedia.com/slide-show/5-ways-to-buy-a-used-car/bottom-line.aspx?lastSlide=1
... ins. 3. Government Auctions. Thousands of seized, surplus and forfeited
cars each month are sold at online and live auction venues. ...
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