An option whose underlying asset is the common stock of a corporation.
Stock options are the rights given by a corporation to its employees to buy its shares at a predetermined price. If the market price of a stock rises above the strike price, employees can sell the stock on the market to gain a profit. In Japan, options were first allowed in 1997, and a growing number of companies are introducing them as a new form of compensation for executives and employees. As of June 30, more than 30% of all listed firms, including those listed on the markets for start-ups, had introduced stock options. Calculating the costs of stock options involves such factors as the current market price of a stock, the strike price, the specified period that the employee can exercise the option, and stock price volatility. For companies with volatile stock prices, such as start-ups and high-tech firms, the expenses for the stock options generally increase. Some financial officers of firms have voiced the concern that calculating the expenses of stock options is a complex matter and would become a significant burden. Unlisted companies do not have available the data necessary for the calculations, such as the stock price, so making accurate calculations would be difficult.
Options with a securities price index as the underlying asset. The index options specifies conditions, e.g. the exercise index level, the multiplier, the exercise date(s), the expiry date, etc.
Securities issued by a company -- usually to its officers and directors -- that allow the holder to buy stock in the company at a specified price during a specified period of time. They are widely used as part of a company's executive compensation plan. Their general purpose is to motivate executives to perform well in order to help raise the company's stock price, thereby increasing the value of their stock options. There are also publicly traded stock options, not issued by the company itself. These are generally used by non-Insiders for speculating and hedging activities.
Essentially, a stock option gives the holder the right to buy or sell stock at a specified price by a specific date. Companies often issue stock options redeemable at a higher share price than the current price, in hopes of inspiring employees to help the company improve performance. Investors often buy options on the open market because they believe a certain stock will rise or fall in the near future, hoping to pocket the difference between the stock's current price and the price they think the stock will sell for in future.
A retirement plan or other benefit in which employees are either given stock in the company or an option to purchase stock in the company.
The right to acquire, at a set price (known as the "strike price"), during a specified time period, a specific quantity of shares in the employer's stock. Stock options can be qualified ("Incentive Stock Options") or non-qualified.
A type of retirement plan in which employees have the opportunity to purchase stock in the company for which they work.
An agreement, or privilege, which conveys the right to buy or sell a specific security or property at a specified price, by a specific date.
An employee stock option is an offer made by a corporation to an employee to sell stock in the corporation to the employee at a bargain price for a stated period of time. Stock options are a form of incentive compensation that many companies offer their key executives. There are two different types of stock options that are treated differently for tax purposes. Non-qualified or non-statutory options are generally given to employees as a form of compensation. Qualified stock options include incentive stock options, employee stock purchase plans, statutory stock options, and restricted stock options. These are usually given to senior executives and directors of corporations.
1) The right to purchase or sell a stock at a specified price within a stated period. Options are a popular investment medium, offering an opportunity to hedge positions in other securities, to speculate on stocks with relatively little investment, and to capitalize on changes in the market value of options contracts themselves through a variety of options strategies. 2) A widely used form of employee incentive and compensation. The employee is given an option to purchase its shares at a certain price (at or below the market price at the time the option is granted) for a specified period of years.
Rights to purchase a corporation's stock at a specified price.
Form of employee incentive and compensation. The employee is given an option to purchase a companyâ€(tm)s shares if certain targets are met under specified conditions.
The right to purchase shares of common stock in accordance with an agreement, upon payment of a specified amount; a compensation scheme under which executives are granted options to purchase common stock over an extended option period at a stated price
