Stock Options

Stock options give a holder an opportunity to purchase shares in a company at a specified price over a specified period of time. The most common type of stock options are employee stock options, which companies grant as a form of non-cash compensation. The price at which the shares can be purchased is referred to as the options'... more »

Explaining company stock options to employees can be a challenging task. There are many points to cover, and most employees need at least somewhat personalized advice when it comes to this benefit. Taxation is another matter to consider. more »

Stock repricing is a strategy to increase employee retention and make stock options more valuable to employees. Companies typically consider this option when they are out of stock and are having difficulty retaining employees. Some companies leave top executives out of this process and only make repricing available to middle-managers... more »

When investing in the stock market the more an investor can lessen his or her risk on a given stock purchase the better. This is where stock options come in. Rather than buying the actual stock, an option investor pays only a small percentage of the stock price for the option to buy or sell the stock at a later date. There are steps... more »

Stock options offer investors limited downside in pursuing speculative trading strategies. Stock options also offer the ability to hedge existing positions and to minimize risk. Stock options are important in many advanced trading activities. Investors can make money as both a call writer or a call seller depending on market... more »