Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? Cost Basis (Restricted Stock) The cost basis represents the amount you have paid for the stock plus any income related to your restricted stock grant on which you have already paid taxes. Cost basis may also be referred to as tax basis or value basis. In most cases, the cost basis will be the market value of the stock on the vest date. If you filed a Section 83(b) election to pay your taxes at the time of your grant, the cost basis will be the market value on the grant date. If you deferred the release of your shares under a formal deferral program offered by your employer, the cost basis will be the market value on the deferred release date. When you sell your stock, the cost basis is subtracted from the amount you realize on the sale to determine your capital gain or loss. The Cost Basis is calculated by your employer. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.