Dating of stock option grants
Purchasing a stock option is also known as exercising.
For more details on stock option grants and tips on determining the best time to exercise, read CNN Money's "Employee stock option plans." From the employer's standpoint, the idea behind stock option grants is to give employees the incentive to align their interests with that of the stockholders.
Non-qualified stock option grants are tax deductible by the company that provides them.
An employee stock option plan can be a lucrative investment instrument if properly managed.
Upward stock option repricing: companies often reduce the exercise price of employees' outstanding stock options to the current stock price to restore the options' incentive effect and retain talented employees.
A grantee can be an executive, or a wage or salaried worker, and is also often referred to as the optionee.
Non-qualified stock options differ from incentive stock options in two ways.