Business, Legal & Accounting Glossary
An option giving an employee the right to purchase the issuing corporation’s stock at a specified price within a defined period as partial payment for the employee’s services. The measurement date is the earliest date on which both the option price and the number of shares to be issued are known.
Compensation = quoted stock market price at the measurement date – option price
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This glossary post was last updated: 20th November, 2021 | 0 Views.