Restricted stock refers to securities acquired through private placements, such as those offered under Regulation D. These securities are not registered with the SEC and are subject to holding period restrictions before resale.
A is correct because Regulation D offerings involve private placements, resulting in restricted stock.
B is incorrect because IPOs involve publicly traded shares, not restricted stock.
C and D are incorrect because restricted stock is not obtained through warrants or exchange-traded options.
[Reference: SEC Regulation D, Rule 144 (Restricted and Control Securities), , , , , , ]
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