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LSDefine

Simple English definitions for legal terms

employee stock option

Read a random definition: forest law

A quick definition of employee stock option:

Employee stock option: This is when a company gives its employees the option to buy company stock at a certain price. It's like a special discount for employees. If the stock price goes up, the employee can buy it at the lower price and sell it for a profit. If the stock price goes down, the employee doesn't have to buy it and can just let the option expire.

A more thorough explanation:

Employee Stock Option

An employee stock option is a benefit given to employees by their company that allows them to purchase company stock at a discounted price. This benefit is usually offered as an incentive to retain employees and encourage them to work towards the company's success.

For example, let's say that John works for XYZ Corporation and is given an employee stock option. The option allows him to purchase 100 shares of XYZ stock at a price of $50 per share, even though the current market price is $75 per share. John decides to exercise his option and purchases the shares for $5,000. If the stock price increases to $100 per share, John can sell his shares for $10,000, making a profit of $5,000.

Another example is Sarah, who works for ABC Inc. and is given an employee stock option. The option allows her to purchase 50 shares of ABC stock at a price of $25 per share, even though the current market price is $30 per share. Sarah decides not to exercise her option and instead waits to see if the stock price will increase. If the stock price does increase, Sarah can exercise her option and purchase the shares at the discounted price, making a profit if she decides to sell the shares later.

These examples illustrate how an employee stock option works. The employee is given the option to purchase company stock at a discounted price, which can potentially lead to a profit if the stock price increases. This benefit is used by companies to incentivize employees to work towards the company's success and retain valuable talent.

Employee Retirement Income Security Act | employee-stock-ownership plan

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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