Final answer:
Restricted stock is granted to certain company insiders with limits on trading, often given through a vesting plan. It aims to reward employees with ownership, subject to conditions that promote loyalty and align interests with the company.
Step-by-step explanation:
Restricted stock is a type of stock that is granted to company insiders with limits on when it may be traded. Restricted stock units (RSUs) are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with their employer for a particular length of time. Restricted stock is typically restricted from being traded and must vest before selling. It's a tool for companies to reward employees with an ownership stake in the company, usually with certain conditions attached, such as a vesting period during which the employees must remain with the company before gaining full ownership of the stocks to encourage loyalty and align their interests with those of the company.
So, in the context of the provided options, restricted stock most closely aligns with the definition 'Stock that is only available to certain individuals' as it refers to stocks that are not freely tradable until certain restrictions have been lifted.