Final answer:
Vested restricted stock awards are a type of employee compensation with restrictions, not sold immediately, and often given as bonuses. Companies don't promise a rate of return on IPOs, and decisions in shareholder-owned companies are made by a board of directors.
Step-by-step explanation:
Vested restricted stock awards are a form of employee compensation that are granted to employees and are subject to certain restrictions. These restrictions typically include a vesting period during which the employee must remain with the company before they have full ownership of the stock. Once vested, they may face additional holding-period restrictions before they can sell the stock. These awards can be given as a bonus or incentive to employees.
When a company sells stock in an initial public offering (IPO), they do not promise a specific rate of return. Instead, the value of the stock depends on the company's performance and market conditions. Decisions in a company owned by a large number of shareholders are typically made by elected officials, such as a board of directors, rather than the shareholders directly, although shareholders vote on major decisions and elect the board.