share option


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Related to share option: Employee Stock Option Plans, Employee stock options

share option

a contractual right to buy a SHARE in a company at a predetermined price within a predetermined period. A company seeking to raise new capital can grant existing shareholders options to buy new shares in proportion to their existing shareholdings. Shareholders can either exercise their options and buy the shares or can sell their option rights on the STOCK MARKET. Share options can also be granted by a company to its executives and other employees as a means of improving their motivation and loyalty to the company See RIGHTS ISSUE, EMPLOYEE SHARE OWNERSHIP, EXECUTIVE SHARE OPTION SCHEME, LONG-TERM INCENTIVE PLAN, ENTERPRISE MANAGEMENT INCENTIVE SCHEME, SHARE INCENTIVE PLAN.