Repricing(redirected from Effect of taxes and subsidies on price)
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To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The act of a manager or other high level employee exchanging an out-of-the-money stock option in the company for an at-the-money stock option. Companies issue new at-the-money options and make the exchanges in order to reward the employee and/or to provide an incentive for the employee to continue to perform well even when the company's stock price has declined.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The exchanging of newly issued incentive stock options priced at the current market price for previously granted options that are out-of-the-money. Repricing rewards managers of companies with stock prices that have declined.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.