PrivateTechSharesHome › Glossary › Restricted stock award (RSA)
🇺🇸 US · Equity & optionsRestricted stock award (RSA)
Also called: RSA, restricted stock
In one line
Actual shares granted to you up front, subject to vesting and a company right to repurchase unvested shares if you leave.
In plain English
Unlike RSUs (a promise) or options (a right to buy), an RSA gives you real shares now, usually for a tiny price. They're yours but can be bought back if you leave before vesting — and they're ideal for an 83(b) election.
If you were explaining it to a 5-year-old
You're handed the real toy today for almost nothing, but if you stop helping early, the club can take back the part you hadn't earned yet.
Why it matters when you sell
Because you hold real shares early, RSAs plus an 83(b) can set up excellent tax treatment — and may be sellable sooner than options or RSUs.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
Primary references for this term: US SEC / Investor.gov, IRS (US tax). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.