The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: 1st Time Rec Stock Options||Date: 3/18/2001 5:59 AM|
|Author: wisenlucky||Number: 28493 of 78012|
RiverCity gave you a very good response to your post. I wanted to add a few points more from a business perspective.
First, we don't know if your wife works for a public company or not. If the company is private, there may not be much of a market for her shares if she were to exercise her options.
Second, most companies give out stock options as an incentive to get their employees to work harder or smarter. That said, the options' strike price, or price which your wife must pay to exercise her options and convert them to shares, will almost certainly be at or higher than current market price. If they were below market price, they would provide no incentive - and they would have to be expensed by the company in its current financial statements. Not a pretty picture from the company's perspective.
Hope this helps.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|