what are exercisable shares?

Question

i.e., if someone has 20,000 shares with an exercise price of £2 does this mean the can buy or sell shares at that price?

Answer 1

You can exercise your right to purchase shares at that price. So this could be to your advantage if the stock is selling above that price; you could purchase them and then sell them right away for a speedy profit. On the other hand, if the shares are below that price, your right to exercise doesn't make sense, so you let the right expire... no harm done.