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Share option |
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Share optionAn incentive given to company directors and employees to promote loyalty and commitment.The employee is offered an option to buy shares in the company at a fixed price, at or below the then market price. The option specifies the time during which the employee can exercise the right, and often this will be a period of years. If the company's share price rises in that period, the employee can exercise the option, acquire the shares at the option price, and immediately sell them for a capital gain. If the company's shares do not rise, the employee may take the view that the option is not worth exercising. The option mechanism thus gives the employee discretion.Tax liabilities may be reduced on gains where schemes are approved by the Inland Revenue.Similar MatchesSettlement optionsSettlement optionsThe various options available to the beneficiaries of a life insurance policy in the event of the death of the insured. For example a lump sum or an income. Gnma (government National Mortgage Association) OptionsGnma (government National Mortgage Association) OptionsA method of purchasing GNMA securities through "puts" and calls." A GNMA Call Option is the right to buy GNMA securities at a specific yield for a specified time, A Put Option is the right to sell GNMA securities at a specific yield for a specified time. The buyer pays for the option and may exercise it, not exercise it, or sell it. Reduction Option Loan (ROL)Reduction Option Loan (ROL)A hybrid of a fixed-rate and adjustable-rate mortgage. An ROL the borrower to match the current mortgage rate, which then becomes fixed for the rest of the term. This reduction is usually allowed if rates drop more than 2% in a year. Covered optionCovered optionOption position that is offset by an equal and opposite position in the underlying security. Antithesis of naked option. Call optionCall optionA clause in a loan agreement that allows a lender to ask for the balance at any time. Further SuggestionsClass of OptionsOption holder Two state option pricing model Basket options Tax timing option qualified stock option abandoned option Doubling option Option Pricing Curve Out of the money option Option cycle Nonqualifying stock option option series In the money option Call option Indexed Stock Options Currency put option American style option Spread option option writer Option agreement Exercising the option Option premium lapsed option Lease With Option To Purchase |
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