What are Employee stock options (ESO)?

The use of options is very common in business, as they allow the parties to the contract to create today a right that can be materialized in the future usually within a pre-defined time frame.
In Employee Stock Options, the Option’s underlying asset is a Company Stock, the Parties to the Options Contract are an employer and employee, and the Option itself is part of a payment Package. Obviously, the option is always only about buying the underlying asset - Company’s Stock.
► Want to know more? Click here: www.invest-owl.com/glossary/em...
► Get smarter with free 5-minute investment video lessons delivered to your inbox every week, Register Now: www.invest-owl.com/learn-inves...

[@manessave3162]

Mesej yang jelas, struktur yang jelas, mudah difahami, terima kasih

[@StevenSmith68828]

Can you then sell a short call and use that stock option as collateral?

[@jgyuri]

What happens if the shares go down?

[@anthonymort5202]

I don't get why companies don't give their employees a percentage of the company like the employee pool as a whole say the company has 500 employees and they give the employee pool 10% of the business do all 500 employees share that 10% but it would make the employees want to work harder and want the business to make more money because if the business makes more money there 10% is worth more and they will make more money in dividends because they can't do value stocks because the employee pool owns the stock at the hole so you can't sell it for the value but the more money the company makes the more money they will get in dividends so will make them want to work harder and make them want the company to make more money

[@logeshwarans8466]

Clearly confusing video..😪🙄

[@vsvlogging5046]

This is usful for you brother

[@snake1625b]

Isn't this the same thing as just giving the employee stocks

[@johngannon5341]

John Fernandez it’s a bit different. In this case, the employee has the option to buy the stock for 2$ up to three years in the future. That means three years from now, if the stock goes up to $4, he can still buy the shares for 2$ each and make a lot of money. However, if the stock dips below 2$, bob can let the option expire and he does not lose any money at all.

[@MaximoUceda]

@@johngannon5341 what about the premium Bob has to pay, what would that be?

[@ErikPT]

@@johngannon5341 no that sounds like it comes from the common stock of outstanding shares, also there’s restricted stock which is deducted via payroll

[@lenfuld]

The gain from the exercise of a nonqualified stock option is NOT taxed as capital gain but as regular compensation income. This video is wrong.

[@user-jq7hu3mx8q]

anda perlu menjelaskan kandungan

[@InvestOwl]

► Want to know more? Click here: www.invest-owl.com/glossary/employee-stock-options-eso/
► Get smarter with free 5-minute investment video lessons delivered to your inbox every week, Register Now: www.invest-owl.com/learn-investing-terms-tips-once-a-week/