Forfeited Share

A forfeited share is a stock share we own that we have to give up because we don’t meet one or more of the ownership requirements.

This can happen for a number of reasons. If we own employee stock in a company and we get fired, we might have to forfeit our shares. If we went on a payment plan to buy a bunch of shares and then we couldn’t make one of the payments, we could end up forfeiting our shares. If we trade our shares during a restricted trading period, we could forfeit the shares. And so on and so forth.

Basically, if we bought it and then we have to give it up because we don’t meet the standard or did something we weren’t supposed to do, those shares become forfeited shares.