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What does underwater mean in some empolyees' stock options are underwater?
Wiki User
∙ 14y ago
It means that the strike price, which is the price you can buy your company's shares for, is higher than the market price such that there is no sense exercising your options for the shares at all.
Wiki User
∙ 14y ago
Wiki User
∙ 15y agoThere are two basic kinds of options: the kind you get as part of your pay, and the kind you invest in. "Underwater" refers to the first kind, and it just means the strike price of the option is higher than the market price of the stock--hence worthless, since if you were holding an option on Acme at 28, and Acme was selling at 25, you certainly wouldn't exercise an option that would cause you to lose $3 per share! Options bought as investments that are in similar straits are called "out of the money."
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What does stock options mean exactly?
Stock options basically a priveledge that is sold by one party to another that allows them to buy or sell stock. It is not an obligation by the buyer to sell, they can if they choose to sell upon the agreed on price.
Is a stock option redistributable?
What do you mean redistributable? For what it's worth, stock options do not usually grant the owner the right to dividends or other equity-related income.
What does per contract mean when dealing with stock trading?
Per contract refers to options trading. It means in one contract, there are 100 shares of that company's stock.
What is stock option information and what does it mean?
A stock option is simply a privilege that can be purchased allowing them to buy or sell stock at a certain price for a specific period of time. Many companies offer their employees stock options in the company for their service.
What is meant by date back?
presume you mean "back date"... like back dating stock options. Questionable and sometimes illegal process of claiming in the present that something (like the granting of stock options to executives) actually occurred at an earlier time than it did.
What does it mean to be offered preferred stock?
Preferred stock as opposed to ordinary stock is treated preferentially (hence the name) when it comes to paying out any dividends. Therefore such stock options, when exercised, can become a significant part of your remuneration, but bear in mind that in exercising these options you link your personal fortune more closely to your company than your contract of employment might specify.
What does rotate the stock mean?
rotate the stock
What does it mean when a company floats on the stock exchange?
what does floating on the stock exchange mean
What does BAR mean on a watch?
Pressure rating for underwater
What are options?
According to Optiontradingpedia.com,"A stock option is a contract that gives the buyer the "right" or "power", but not the "obligation", to exercise the contract on or before a fixed future date (the exercise date or expiration) to trade the underlying stock at an agreed price."Essentially, it is a trading instrument that gives you leverage if used purely for speculation and protection if used as a hedge. The various options strategies that can be made using options also gives traders a precise mean of trading almost every outlook on a stock.
What do you mean by nifty if it relates stock and shares?
what do you mean by nifty if it relates to stock and shares
What does the letter s next to a stock in the stock listings mean?
Stock split
