Stock Options

Delta: Sensitivity of Option Value with Respect to Asset Price
Delta measures the rate of change of an option's price with respect to changes in the underlying asset's price, indicating its sensitivity to such variations.
Eligibility: Understanding Eligibility Criteria in Finance and Investment
A comprehensive overview of eligibility criteria in finance, investment, and employment situations, exploring different types, examples, historical context, related terms, and FAQs.
Employee Share Ownership Plan: An Inclusive Wealth-Building Tool
An in-depth look into Employee Share Ownership Plans (ESOPs), their historical context, mechanisms, benefits, and relevance in modern business practices.
Employee Stock Option Plan (ESOP): A Comprehensive Overview
An in-depth guide to understanding Employee Stock Option Plans, their historical context, types, benefits, challenges, and their importance in modern corporate structures.
ESOP: Employee Share Ownership Plan
An in-depth exploration of Employee Share Ownership Plans (ESOP), their historical context, types, key events, significance, models, and applications.
Executive Share Option Scheme: Incentivizing Employee Ownership
An executive share option scheme is an approved share option scheme that entitles a specified class of directors or employees to purchase shares in the company in which they are employed.
Exercisable Options: Stock Options Available for Purchase
A comprehensive guide on exercisable options including their definition, historical context, key events, types, mathematical models, importance, applicability, and more.
Incentive Plans: Encouraging Employee Achievement
Incentive Plans encompass various forms of compensation aimed at motivating employees to achieve specific organizational goals, including stock options, commissions, and other monetary rewards.
Non-Qualified Stock Option (NSO): A Detailed Overview
A Non-Qualified Stock Option (NSO) is a type of stock option that does not qualify for special tax treatments and can be granted to employees, directors, contractors, and others.
Phantom Stock: Simulated Shares Offering Equity Benefits
Phantom stock is a compensation strategy where employees receive benefits equivalent to company stock, without actual stock issuance. It serves as a bonus tied to the value of the company’s stock.
Stock Options: Contracts Granting the Right to Purchase Company Shares at a Set Price
Stock Options are financial instruments giving employees or executives the right, but not the obligation, to buy or sell company stock at a predetermined price within a specified timeframe, often used as a form of compensation and incentive.
Stock Vesting: Understanding the Period of Exercisability
Stock Vesting is the period during which stock options become exercisable. Learn about the types, importance, key events, and more in this comprehensive article.
Strike Price: Definition and Importance in Options Trading
Strike Price, also known as the exercise price, is the fixed price at which the holder of an option can buy or sell the underlying asset. This article explores its historical context, types, key events, explanations, formulas, diagrams, applicability, and much more.
Unvested: Benefits Not Yet Owned by the Employee
The concept of unvested benefits pertains to the benefits, such as stock options or retirement funds, that are not yet owned by an employee.
Vesting Period: An Essential Concept in Employee Compensation
The vesting period is the timeframe an employee must wait before exercising their stock options or gaining full ownership of their shares granted as part of their compensation package.
Backdating: Manipulating Dates for Financial Gain
A comprehensive exploration of backdating involves the manipulation of dates on financial instruments and its implications in various fields, including finance, accounting, and legal contexts.
Compensatory Stock Options: An Overview
An in-depth look at compensatory stock options, detailing their purpose, measurement, applicability, and related terms within the context of employee compensation.
Time Value: Understanding the Significance
Time value is the price put on the time an investor has to wait until an investment matures, determined by calculating the present value of the investment at maturity.
Underwater: Financial Conditions When Values Sink
Comprehensive explanation of the term 'Underwater' in various financial contexts, including loans, options, and investment portfolios.
Employee Stock Options (ESOs): Comprehensive Overview and Key Insights
A thorough exploration of Employee Stock Options (ESOs) - their mechanics, benefits, types, taxation, accounting treatment, legal considerations, and strategic utilization.
Fully Vested: Definition, Vesting Schedules, and Benefits
Understand what it means to be fully vested, how vesting schedules work, and the benefits for stock options, profit sharing, and retirement plans.
Incentive Stock Options (ISO): A Complete Guide to Benefits and Tax Advantages
Incentive Stock Options (ISO) are a type of employee benefit that gives the right to buy company stock at a discounted price, along with tax incentives. Understand the intricacies, benefits, and tax implications of ISOs.
Option Pool: Purpose, Mechanism, and Benefits
An in-depth exploration of option pools, their purpose, how they work, and the benefits they offer to both employees and companies.
Options Backdating: Understanding the Practice and Its Implications
Options backdating involves the practice of issuing stock options retroactively to benefit the option holder. This entry explores its mechanics, legal considerations, historical examples, and impacts on financial reporting and corporate governance.
Treasury Stock Method: Definition, Formula, and Examples
Learn about the Treasury Stock Method, including its definition, formula, applications, and real-world examples. Understand how companies compute the number of new shares created by unexercised in-the-money warrants and options.
Triple Witching: Definition, Implications, and Impact on Trading
An in-depth exploration of Triple Witching, its definition, implications for the market, and its impact on trading, particularly in the final hour of trading sessions.

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