What describes stock received for services that is subject to forfeiture?

Restricted stock refers to shares that are issued to an individual, typically an employee, but come with certain limitations or restrictions. In the context of being subject to forfeiture, this means that the stock cannot be fully owned or vested until certain conditions are met—commonly tied to a vesting schedule that depends on continued employment or the achievement of specific performance objectives.

For example, if an employee receives restricted stock for services provided and leaves the company before the vesting period is complete, the stock would then be forfeited, reflecting the stock's contingent nature. This is a critical aspect of restricted stock that sets it apart from other types of stock, which typically do not have such conditions attached.

Public stock, common stock, and preferred stock, while relevant in discussions about equity securities, do not carry the same implications of forfeiture under terms of service. As they are typically fully owned by the holder once acquired, they lack the conditional nature inherent in restricted stock.