EMPLOYER STOCK OPTIONS AND STOCK PLANS
01.Core Concepts
Stock Options • The right to buy employer stock at a specified price for a specified period of time • Agreement must be in writing, and holder has no obligation to exercise Option Price = FMV at date of grant Vesting • Right to exercise options only after certain period of time, performance, or occurrence Types of Options • Incentive Stock Options (ISOs) • Nonqualified Stock Options (NQSOs) • Stock Appreciation Rights (SARs)