Stock option

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Stock option

Stock Option

A non-tradeable call option giving an employee at a publicly-traded company the right to buy shares in that company for a certain price. Stock options in this sense are often a part of compensation for major and mid-level executives in large publicly-traded companies. If the share price for the company increases, stock options can be very profitable for the employee. These stock options have certain rules governing when and how the option can be exercised.

stock option

An option to buy or sell a specific number of shares of stock at a fixed price until a specified date. See also call, capped-style option, incentive stock option, put.

Stock option.

A stock option, or equity option, is a contract that gives its buyer the right to buy or sell a specific stock at a preset price during a certain time period.

The exact terms are spelled out in the contract. The same contract obligates the seller, also known as the writer, to meet its terms to buy or sell the stock if the option is exercised. If an option isn't exercised within the set period, it expires.

The buyer pays the seller a premium for the privilege of having the right to exercise, and the seller keeps that premium whether or not the option is exercised. The buyer has the right to sell the contract at any point before expiration, and might choose to sell if the sale provides a profit. The seller has the right to buy an offsetting contract at any time before expiration, ending the obligation to meet the contract's terms.

Stock options are also a form of employee compensation that gives employees -- often corporate executives -- the right to buy shares in the company at a specific price known as the strike price. If the stock price rises, and an employee has a substantial number of options, the rewards can be extremely handsome.

However, if the stock price falls, the options can be worthless. Often, there are time limits governing when employees can exercise their options and when they can sell the stock. These options, unlike equity options, can't be traded among investors.

References in periodicals archive ?
More information about ESO can be found at: http://www.
The most volatile and most efficient plasticizer (DOS) also resulted in the greatest mass loss and deterioration in tensile properties of the plasticized compositions at elevated temperatures, but the effects were mitigated by increasing amounts of ESO in mixtures with DOS, such that some of the bioplasticizer mixtures resulted in acceptably high retention of TE (50% or greater) after aging at elevated temperatures, as did the ESO compositions.
The observations show that the outskirts of ESO 137-001 are already completely devoid of gas.
Additionally, we examine the ESO risk incentive effect (vega effect) on various corporate innovative activities with different risk levels/types.
The first reshuffle came amid a scandal over the delayed separation of ESO from NEK and potential penalties by the European Commission.
ESO is now a large organization and its history is hard to summarize, but I found it fascinating to read of the many problems that had to be overcome.
In these fearsome times of widespread cuts across the board, where the arts will be first in line, the country's status as a frontline world power last, what resources such as this ESO enterprise offers - co-operation, mutual responsibility, self-esteem, awareness and the rest - are invaluable in every aspect of human activity, and should be cherished.
The court extensively analyzed which regulation section governed the sharing of ESO costs.
In 2007, the 197 active ESO authorizations are almost evenly divided between TDA and TO&E positions at every grade level, something which will facilitate the career development of ESOs and environmental engineers by permitting officers to rotate back and forth between operational and institutional assignments throughout their careers.
Pillcam ESO, which is meant to be an easy screening procedure for potential premalignant lesions, "is not meant to replace a traditional endoscope," Rami Eliakim, M.
La devaluacion del real brasileno y del peso argentino ayudo a los exportadores de esos paises a tomar la delantera al resto del mundo en los sectores de acero, granos y otros bienes el ano pasado, y las adquisiciones estrategicas de este ano por parte de empresas brasilenas les significaran fuertes posiciones de mercado tanto en casa como en varios pises en recuperacion en Sudamerica.
We approach the ESO valuation problem in the same manner that Salomon Brothers addressed the mortgage issue in the early 1980s," says Rod Parsley of AG/E.