stock option


Also found in: Dictionary, Thesaurus, Medical, Financial, Encyclopedia, Wikipedia.

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 ?
Thus, if a stock option agreement states that the options are nontransferable, a domestic relations order requiring the options to be transferred nonetheless will generally be unenforceable.
Only a little more than a year ago it seemed that stock options were the quick path to riches.
Stock options are taxable for Dutch wage, social security, and personal income tax purposes when the employee can exercise the stock option for the first time.
71-52, the IRS determined that an employer did not make a payment of wages for purposes of assessing employment or income tax withholding at the time of the exercise of the qualified stock options under former Sec.
Implicitly, the IRS also does not regard stock options as "property" subject to nonrecognition under Sec.
44 became effective July 1, 2000, and, with some exceptions, will apply prospectively to new stock option awards, exchanges and modifications and changes in status that occur on or after that date.
Unlike other products that only focus on a single aspect of stock plan administration, such as tracking numbers for a stock option plan, Two Step's Equity Focus also brings together all of the critical corporate governance information and legal documents that support stock option administration - helping companies ensure proper records management and easier compliance with new regulations.
For growing companies, particularly those in the high-tech sector, stock options present a way to offer workers an equity stake early in the company's history, allowing them to benefit from the company's growth and potential for stock appreciation.
Taxation of nonqualified stock options (NQSOs) is governed by Sec.
Thus, granting options under nonemployer stock option plans generally results in a charge to the company's earnings.
In July 2006, the Company announced that the Audit Committee of its Board of Directors had self-initiated an internal review of the Company's stock option grant practices.