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🌍 US & Europe · Equity & optionsRestricted stock unit (RSU)
Also called: RSUs, restricted stock units
In one line
A promise to give you actual shares for free once conditions are met — typically vesting plus, at private companies, a liquidity event.
In plain English
Unlike options, RSUs cost you nothing to get — the company just hands you shares when they vest. At private companies there's often a second trigger: you only receive the shares at an IPO or sale, not before.
If you were explaining it to a 5-year-old
It's a promise note that says 'you'll get a real toy, free' — but only once you've helped enough AND the shop finally opens its doors.
Why it matters when you sell
At a private company, double-trigger RSUs usually can't be sold early because you don't hold the shares yet — the shares appear only at the exit.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our 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.