stock options

Shares as pay

Stock options are contracts giving the holder the right to buy or sell shares at a predetermined price within a set timeframe.

Employee stock options, the most familiar kind, let workers purchase company shares at a fixed price—potentially profitable if the stock rises: Her stock options vested after four years.

Options are also traded as financial instruments for speculation or hedging.

Related

hedging · dilution · securities · speculation · tax codes · golden handcuffs · golden parachutes · swaps · cliff · strike price · expiration date · underwater · collars · warrants · upside · in the money · out of the money · insider trading laws

Categories
Opposites
compensation certainty

stock optionssigning bonus

Payment upon accepting employment

pension · base salary · base pay · hourly wages · severance pay

equity vs. cash compensation

stock optionscash bonus

Monetary reward beyond wages

hourly pay · commission · per diem · expense reimbursement

risk profile

stock optionsguaranteed income

Payment promised without condition

savings account · certificates of deposit · treasury bonds · bonds · money market account

Family

stock, option

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Top 100,000
Profile
Used worldwide · Timeless · Abstract · Rated G