stock option

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stock option

n. the right to purchase stock in the future at a price set at the time the option is granted (by sale or as compensation by the corporation). To actually obtain the shares of stock the owner of the option must "exercise" the option by paying the agreed upon price and requesting issuance of the shares. (See: stock, share, option)

References in periodicals archive ?
Subscription of shares in the company based on warrants shall take place at a subscription price and on other conditions that in all essential aspects shall correspond to the conditions of the employee stock options which the warrants intend to secure.
Start-up companies are dependent on employee stock options because in their early stage of development they do not have the financial resources to offer competitive compensation packages.
We continue to believe that a market-based valuation of employee stock options is the best way in which to determine the value of these options.
Both the SEC, through the Office of the Chief Accountant, and the FASB had been grappling for years with whether and how employee stock options should be treated as an expense in companies' income statements.
Oversight provides the complete solution for companies to certify the compliance of their employee stock option programs.
123(R) requires companies to use deferred tax accounting for employee stock options.
However, the binomial lattice is gaining popularity among pricing experts because of its superior ability to account for unique factors of employee stock options, such as vesting periods and early exercise of options.
Prior to the renewed interest in this question, the applicable rule--embodied in Statement of Financial Accounting Standards (SFAS) 123, issued in October 1995--required that the hypothetical compensation cost of employee stock options should be recorded at "fair value" as an expense in corporate income statements.
In this webinar, it examines everything you need to know in 60 minutes to update your knowledge on the key practical, strategic, financial, and accounting issues surrounding employee stock options and other types of stock-based compensation plans that are impacting CEOs and their companies in 2011 and 2012.
Zions Bancorporation's board of directors granted 994,180 employee stock options on May 4, 2007 with a strike price of $83.
But because employee stock options can't be traded publicly, their fair value is not readily available and must be estimated using option-pricing models.

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