What Is a Stock Option? A stock option is a contract giving its holder the right, but not the obligation, to buy or sell a stock at a given price before a specific date. There are two main types of ...

Forbes contributors publish independent expert analyses and insights. Bruce makes the law and tax code understandable to everyone. When you receive a grant of stock options, it is imperative that you ...

Start with simple definitions before discussing numbers. A stock option gives an employee the right to buy company shares later at a fixed price called the strike price. Clarify that options are not ...

Index options offer access to a market with more liquidity. Index options offer cash settlements. Stock options offer inexpensive price options. Index options only offer a few choices that are ...

Many foreign persons are employed in America and are given stock options as an incentive by the companies for which they work. When a foreign national works in the U.S. and is granted stock options, ...

With equity markets near all-time highs and the IPO market starting to thaw, many executives are wrestling with a tough question: When to exercise their stock options? It’s far from an easy decision.