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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
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.