What does it mean to exercise stock options? - what does prolecis mean
I have seen in recent weeks in the company, where I (a 6 billion-dollar company to work) officers to exercise their stock options. The company receives payments in cash. What is the exercise of stock options?
Wednesday, December 16, 2009
What Does Prolecis Mean What Does It Mean To Exercise Stock Options?
1 comment:
I'm pretty sure that it works this way ...
A call option is a right to buy shares at a fixed price to buy. Suppose you have the option of 10,000 shares at $ 20 (and the population is currently estimated at $ 17 on the open market). Later, the price rose to $ 25. You can buy your exercise right to buy shares at $ 20. 100,000 shares @ $ 20 means that there is $ 2,000,000 dollars in shares purchased. Since the price is $ 25 on stock market in May turn around and sell the 100,000 shares for $ 2,500,000 and $ 500,000.
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