stock option
Employee purchase right
A stock option is the right to buy or sell a company's shares at a predetermined price within a specific time period.
As employee compensation, stock options let workers purchase company stock at a favorable price, aligning their interests with shareholders: The startup offered stock options instead of a higher salary.
Options are also traded as financial instruments for speculation or hedging.
Gaining full ownership
- grantBestow or award money
- exerciseActivity for fitness
- strike pricePredetermined option execution level
- ESOPWorker ownership program
ISO · dilution · incentive · employee benefit · golden handcuffs · retention · cliff · vesting schedule
Contact by phone
- putPlace in position
- expirationEnd of validity
- premiumAdded cost for better
- derivativeFunction's rate of change
contract · strike price · exercise · volatility · hedge · leverage · intrinsic value · theta
vesting
Gaining full ownership
- grantBestow or award money
- exerciseActivity for fitness
- strike pricePredetermined option execution level
ESOP · ISO · dilution · incentive · employee benefit · golden handcuffs · retention · cliff · vesting schedule · fair market value
call
Contact by phone
- putPlace in position
- expirationEnd of validity
- premiumAdded cost for better
derivative · contract · strike price · exercise · volatility · hedge · leverage · intrinsic value · theta · delta
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- stocksshares, equity, share, shareholder, ownership
- Dot-com Eradot-com crash, bubble burst, irrational exuberance, IPOs, Silicon Valley
- financial contractsfutures contract, forward contract, insurance policy, derivative, annuity
- financial instrumentspromissory notes, check, bond fund, cheque, checks
- derivativesderivatives, sequel, remake, spinoff, forward
stock optionpension
Retiree's ongoing benefit
hourly wage · base salary · base pay · signing bonus · severance pay
stock optioncommon stock
Basic corporate ownership units
shares · equity stake · restricted stock · bond · debenture
stock optiontreasury bond
US debt certificate
government bond · certificate of deposit · savings account · money market fund · cash
stock, option, stocks, options, stocked, stocking, stocker, stockist, restock