Employee stock option

employee stock option investment & finance definition
See incentive stock option.
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Employee Stock Option
In order to compensate, retain, and attract employees, many companies reward their employees by issuing a call option on the common stock of a company in the form of non-cash compensation.

Employee Stock Option Stock options given to employees of a company.
European Option An option that can only be used at the end of its life.
Exotic Option Any non-standard option.
Expiration Date The end of the life of an option.

Employee Stock Options
Stock options for the company's own stock are often offered to upper-level employees as part of the executive compensation package, especially by American business corporations.

Employee Stock Options - Stock options granted to employees by their companies as a mean of compensation and incentive. Read More About Employee Stock Options.
Equity Option - An option that has common stock as its underlying security.

Employee Stock Options Plans should not be confused with the term "ESOPs," or Employee Stock Ownership Plans, which are retirement plans.

Employee Stock Option Plan is a trust established by a company to allot some of its paid-up equity capital to its employees over a period of time. They are used to reward employees.

An employee stock option that grants additional options upon exercise of the original.
Reverse Conversion ...

A type of employee stock option with a tax benefit, when you exercise, of not having to pay ordinary income tax. Instead, the options are taxed at a capital gains rate.

incentive stock option Abbreviated as ISO, refers to a type of employee stock option which provides... inception The date on which something was introduced or started, such as a mutual fund. inchoate Not completed, or recently begun.

A mathematical formula used for valuing employee stock options that considers such factors as the volatility of returns on the underlying securities, the risk-free interest rate, the expected dividend rate, ...

Cashless exercise - tempararly borrowing money to exercise employee stock options.
Chart Patterns - Patterns that appear in a chart and seem to predict price movements.
Clearing Broker - The person in charge of making sure transactions run smoothly.

In the case of an Employee Stock Option Plan (ESOP), shares of one class of stock may be repurchased and converted into another class in order to comply with the terms of the plan.

This includes salaries, bonuses, employee stock options, income taxes, and other expenses which will have been incurred, but not yet invoiced.

When this shortfall is triggered by the exercise of employee stock options, it is a measure of wage expense.

Stock which is acquired though an employee stock option plan or other private means and which may not be transferred. ...
Retail investor ...

Nonqualifying stock option
An employee stock option that does not satisfy IRS qualifying rules and therefore is liable for taxation upon exercise .

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Employee Stock Options
Stock Options Down ...

These options are meant to encourage option recipients to act in a manner consistent with the interests of shareholders. Also called employee stock option or stock option.

Companies may also buy back shares to pay for acquisitions that are financed with stock swaps or to make stocks available for employee stock option plans.

Put-Call Parity
Theoretical Pricing Models: Binomial Option Pricing And The Black-Scholes Formula
The Greeks: Delta, Gamma, Theta, Vega, and Rho
Employee Stock Options; Back-dated Options
Exotic Options ...

stock price went up above the strike price I would have just exercised my option and given them to the buyer. If it didn't at least I got to keep the premium. Thus I got something out of what would otherwise have been worthless employee stock options.

See also: Stock, Option, Market, Options, Share