Restricted Stock is shares or ownership interest in a business which is non-transferable and cannot be publicly traded during the period of the restriction, that is, the holding period. The restrictions are intended to deter premature selling of the interest which can negatively affect the business and its interests. A restricted stock has all the attributes of a publicly-traded stock except that these cannot be traded publicly for a period of time. During the period of the restriction, however, a restricted stock can be traded privately with the transactions transparently reported and recorded by the Securities and Exchange Commission. The restrictions placed on restricted stocks during the holding period affect the potential value realisable to the owner. As a result, business valuators introduce discounts on the value of restricted stocks to reflect the impact of the restriction on the price of the stock.