Stock option backdating accounting Yung girls websaxy
It is a legal method of showing a lower price of a stock.There are a number of sites where one can get stock options explained.They come in two forms; Call Options and Put Options.Call options allow the owner of the option to buy the underlying stock at a fixed price no matter what price the stock is. It depends on the contract the COO has made with the employing company.If your company illegally backdated stock options, it would grant options today for , but backdate them to make it look like the options were granted before the temporary drop.That way, employees could take advantage of the stocks' gain from to .But, if the stock goes up to , then you get a good deal when you exercise your options: you get to buy those same shares at a discount, for /share.
For every stock there are many options to choose from ranging in price and date. Stock options is when you have a right to buy (or sell, but most commonly buy) a stock at a predetermined price.
Exercising a stock option means that you use it: You buy the stocks at the agreed price, and the options expire as you spent them on the stock purchase. Usually a website that gives you a stock quote will give you an option quote also.
Then you can see the different available options for that stock.
The term backdating is usually used in the financial industry, when referring to stock options.
It is the practice of altering the date a stock option was granted, either an earlier or a later date.
For example, if your stock is trading at around $20/share, you might get 1000 options with a strike price of $22/share.