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)

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References in periodicals archive ?
The stock options are exercisable for up to five years at a price of CAD0.79 per share and will be vested in stages over a 12-month period with no more than 1/4 of the options vesting in any three-month period from the date of the grant.
Also, these shares subscribed for under the stock options have been registered in the Trade Register on 25 June 2019, as of which date the new shares will establish shareholder rights.
The company said the stock options have an exercise price of USD9.98 per share, which is equal to the closing price of its common stock on the grant date of 29 June 2018.
During 2009, several high-profile companies decided to complete stock option exchange programs for employee stock options that were severely underwater.
As that compensation program had similar effect as introducing stock option plan, it was called "quasi-stock options" in Japan (Chuo Coopers & Lybrand Advisors, 1999, 231).
A major difficulty in the available data is to define the employee stock option plans.
Typical controls over stock option compensation are mostly manual because the process involves heterogeneous systems and multiple sources of information.
Both the computation of the beginning APIC pool and the ongoing calculations require companies to develop a process for tracking individual Stock option grants.
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.
Zorn, 1990, "The Effect of Executive Stock Option Plans on Stockholders and Bondholders", Journal of Finance, 45:617-627