What does this mean regarding my net worth and wages I report for taxes. I'm not very knowledgable about these things.
2007-03-08 19:08:39 · 6 answers · asked by ambersaintclair 1 in Business & Finance ➔ Investing
Simple Answer: You have the right to purchase 100,000 shares for your company at a prescribed price. If the price of your options is $40/share, anytime the stock is above $40 you are "in the money". Should you choose to sell your options when the stock price is $42, you would have realized $200,000 in capital gains from the transaction. Their may be a time limit associated with the options.
They have probaly given you the options so that you and your co-workers will be motivated to work harder/smarter so the company is more profitable so the stock price will rise.
2007-03-09 14:57:27 · answer #1 · answered by jhistenes 2 · 0⤊ 0⤋
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2016-11-23 16:51:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
This means that you have been giving the right to buy 100,000 shares at a certain price. The price will not go up or down, until the option expires.
If I said that i am selling my car. I am going to sell for $5000, but I will give you the option to buy it for $4000 for six months. After six months you will pay $5000.
2007-03-09 01:30:20 · answer #3 · answered by Kim 3 · 0⤊ 0⤋
When you given 100,000 stock options, you given the right to execute or buy that stock at certain price and certain time. You must have other information such as exercise price and exercise time. At that time you have the right to buy the stock with exercise price and the amount is 100,000 stock. Of cource you can also sell that stock and make money when the exercise price is below market price.
2007-03-08 20:40:53 · answer #4 · answered by www.flyingfaster.com 1 · 0⤊ 0⤋
I urge you go ogle and find out therms from there. Second I urge you to hire a lawyer and accountant to advice you. Make sure he or she is knowledgeable and protect your interest. Do not be cheap and make sure you donate some of your wealth to the disaster such as Red Cross then You will be okay. The law of Nature will bless you. Congratulations if it is the real thing happens to you and enjoy your wealth. Remember do not forget where were you before and keep your feet on the ground then your future will be Rosy. Because, you know what you are doing and you give to others and You never forget where you comes from.
2007-03-08 19:18:36 · answer #5 · answered by ryladie99 6 · 0⤊ 0⤋
as its an option you don't posses them yet so relax
2007-03-08 19:12:10 · answer #6 · answered by q6656303 6 · 0⤊ 0⤋