• Shares in publicly traded companies that are lost or relinquished by the owner due to failure to comply with certain purchase agreements or restrictions are considered forfeited.

  • With the shares confiscated, the shareholder no longer owes the remainder and relinquishes any possible profit on the shares.
  • Forfeited shares are returned back to the issuing company, for example, when an employee leaves before the share options are fully vested.
  • The issuing company can reissue the forfeited shares at any price it wants; usually the reissue is made at a discount compared to the original price.