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Exercise Loan

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Exercise Loan
A loan that an employer gives to an employee to enable the employee to exercise his/her stock options. An exercise loan may be forgiven under certain, defined circumstances.

exercise loan
A loan from an employer to an employee to pay for the exercise of incentive stock options. Exercise loans are sometimes forgiven in the event that specified performance goals are met.


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Panel A: Contingency Table OMIS Within No OMIS Within One Year of One Year of Totals Option Exercise Option Exercise Loan Funded 94[105] 60[49] 154 Not Loan Funded 12,722 [12,711] 5,966 [5,977] 18,688 Totals 12,816 6,026 18,842 [chi square] = 3.
 
 
 
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