stock option

(redirected from Stock options)
Also found in: Dictionary, Thesaurus, Financial, Wikipedia.
Related to Stock options: Employee stock options

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 ?
2, which it says extends its automated continuous monitoring for corporate equity management and stock option grants.
Because the lattice model makes it easy to vary assumptions and inputs over time, entities that grant a great many stock options to their employees will prefer its flexibility to the relatively rigid restrictions of the Black-Scholes-Merton model, which is more suitable for companies whose employee compensation includes few stock options.
While share-based payment arrangements include stock options, restricted and unrestricted stock, share appreciation rights and employee stock purchase plans, this article focuses on accounting for stock options.
Prior to A's divorce from B, A's employer Y issued A nonstatutory stock options as part of it is compensation; no amount was included in A's gross income at the grant.
TEI noted that the divergent treatment of stock options for tax and financial accounting purposes continues to spawn much discussion and inquired whether the Treasury Department anticipates proposing any changes in the tax treatment of stock options.
Stock options are issued to the key personnel of Metso Corporation and to a wholly owned subsidiary of Metso Corporation.
Incentive stock options are not transferable under the tax laws.
As a result, they are scrambling to institute damage control and are re-examining their own compensation and reporting policies to determine whether they backdated or otherwise manipulated the timing of stock options illegally.
123(R) on the horizon, Nagel shared his thoughts about his three-year odyssey into expensing stock options with JofA managing editor Cheryl Rosen.
1041 (nonrecognition of gain or loss) did not apply to stock options (both qualified (ISOs) and nonqualified (NQSOs)) transferred pursuant to a divorce, because the options' value was compensation, not gain.
It also issued Notice 2002-31, which details the proposed rules and guidance for employers in situations involving stock options and divorce.
In the absence of subsequent guidance modifying or eliminating the separate reporting requirement first announced in Announcement 2000-97, Announcement 2001-92 states that the amount of compensation from the exercise of nonstatutory stock options included in boxes 1, 3, and 5 must also be shown separately in box 12 of Form W-2, using Code V.