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.
- employee compensationPayment for labor performed
- bonusesAdded compensation beyond wages
- profit-sharingDistributing earnings among workers
- derivativesThings derived from another
- straddlesSpans with legs apart
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
- entrepreneurshipentrepreneur, startup, founder, co-founder, cofounder
- job benefitsbenefits, 401k, medical coverage, medical benefits, dental insurance
- Financial Assetsassets, cash, savings, investments, investment
- payroll costssalaries, bonuses, overtime pay, payroll taxes, commissions
- tax strategiestax shelters, tax deferral, tax planning, tax avoidance, tax breaks
- workplacehours, cubicle, desk job, holiday party, desk
stock optionssigning bonus
Payment upon accepting employment
pension · base salary · base pay · hourly wages · severance pay
stock optionsguaranteed income
Payment promised without condition
savings account · certificates of deposit · treasury bonds · bonds · money market account