|
|
Share option |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
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 MatchesLondon International Financial Futures and Options Exchange (LIFFE)London International Financial Futures and Options Exchange (LIFFE)A leading market for trading options and futures on euro money market derivatives. Optional payment bondOptional payment bondA bond whose principal and/or interest may be paid in foreign or domestic currency at the discretion of the bondholder. Greenshoe optionGreenshoe optionOption that allows the underwriter for a new issue to buy and resell additional shares. Option cycleOption cycleThe cycle of option expiration months. The most common cycles are: January, April, July, and October (JAJO); February, May, August, and November (FMAN); and March, June, September, and December (MJSD). Doubling optionDoubling optionA sinking fund provision that may allow repurchase of twice the required number of bonds at the sinking fund call price. Further SuggestionsIn the money optionGarman Kohlhagen option pricing model Binomial option pricing model Lapsed option Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) Gnma (government National Mortgage Association) Options option to redeem Intrinsic value of an option Real option result of exercising option Liquid yield option note (LYON) Compound option Class of Options One-way option Put option Asian option Option spread Incentive Stock Option (ISO) Lookback option Exercising the option Covered option Option writer Arbitrage free option pricing models MONEP (Marche des Options Negociables de Paris) Bargain purchase price option |
|
|
|