Share option - An incentive given to company directors and employees to promote loyalty and commitment.The employee is offered an option to buy shares in the company at a fixed price, at or below the then market price. The option specifies the time during which the employee can exercise the right, and often this will be a period of years. If the company"s share price rises in that period, the employee can exercise the option, acquire the shares at the option price, and immediately sell them for a capital gain. If the company"s shares do not rise, the employee may take the view that the option is not worth exercising. The option mechanism thus gives the employee discretion.Tax liabilities may be reduced on gains where schemes are approved by the Inland Revenue.
Share option : an incentive given to company directors and employees to promote loyalty and commitment.the employee is offered an option to buy shares in the company at a fixed price, at or below the then market price. the option specifies the time during which the employee can exercise the right, and often this will be a period of years. if the company"s share price rises in that period, the employee can exercise the option, acquire the shares at the option price, and immediately sell them for a capital gain. if the company"s shares do not rise, the employee may take the view that the option is not worth exercising. the option mechanism thus gives the employee discretion.tax liabilities may be reduced on gains where schemes are approved by the inland revenue.
Share option