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stock option |
Also found in: Dictionary/thesaurus, Financial, Encyclopedia, Wikipedia | 0.04 sec. |
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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) |
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No doubt some of the public companies and senior executives caught up in today s fast-expanding backdated stock options scandal wish they had paid heed to the wisdom of those words back in the early 1990s. The new conventional wisdom is that stock options are on the way out, with restricted stock and other forms of long-term incentives replacing options as the predominant form of executive compensation. Accounting treatment for stock options needs to change. |
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Stock options
