The scope of ASC 320 includes only those equity securities that have readily determinable fair values (., equity securities issued by a public company). However, equity securities issued by a public company are excluded from the scope of ASC 320 if those securities are restricted and that restriction does not terminate within one year of the reporting date. Restricted securities are securities whose sale is contractually or governmentally prohibited. Restricted securities are generally acquired in unregistered form through private placement offerings, but may be registered securities but restricted by contract (., securities subject to a “lock-up” provision in an underwriting.
