Restricted Stock Vs. Stock Options. Stock options provide the possibility of a big payoff if the stock price soars. For instance, a stock option with a strike price of $10 is worthless as long as. A stock option grant with a strike price of $10 has no value when the stock trades at $8. Restricted stock awarded when trading at $10 is still worth $8. Meanwhile, the stock option has lost % of its value while the restricted stock has only lost 20% of its value.
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Stock options incent employees to increase the value of the company. Perversely, the "investors" presumably with the foreknowledge of the events that would happen in the next couple of days could score tremendous profits because they knew EXACTLY when a big stock price movement would happen, and knew with some certainty just what direction it would go:
Receiving or exercising statutory options does not create a taxable event, only the subsequent stock sale triggers a liability. This happens when its strike price is less than the per-share value of common.