Stock grants vs. stock options are different tools employers use to motivate and reward their employees. A corporation can get a tax deduction for letting employees become owners of a company when they follow the rules for letting them purchase stock or grant shares. In either case, employees get taxed on the stock value that's received. Those who receive stock grants can't sell their shares until a certain period of time, known as the vesting period. Shares that are received by using stock options can be resold at any time.
Stock Grants vs. Stock Options It's essential to manage stock as part of an investment strategy, whether they're granted stock or options. These should be handled carefully. Grants and stock options should motivate employees to work harder, stay at work later, and assist with the appreciation of the company's stock. It's beneficial to the employee since the higher value the shares have, the more the employee will gain out of them. These two forms of compensation will also discourage employees from quitting their jobs until the options or stocks vest, as this is often conditional based on continued employment.
Stock and option grants allow some of the compensation to be deferred by companies. An advantage of these is the options and stock grants will cost the company more when there's a high stock price, but will cost the company less when the stock is low. This is due to the value of the stock grant and options package being tied to what the stock price is.
It can be risky to have options. There can be high gains, but they can also be worth nothing if things go bad. A stock grant's net worth is stable and won't go to zero until the company goes out of business. In order to balance the reward-and-risk profile of a compensation package, some options may be awarded in addition to stock.
Compensation The worth of the shares that are given as a stock grant get taxed as regular compensation. The calculation of this often happens after the vesting period has occurred, since the employee isn't restricted from selling their stock anymore. However, an employee can choose to have the tax impact occur when the stock that's restricted is granted initially. An employee who has regular stock options will be taxed when they use their right to purchase stocks.
The value of stocks on the exercise date will be added to the compensation, with the purchase price for the stocks subtracted. This is known as the bargain element of stock options.
John, after the shares grant or share option ,there is an increase in share equity . The how to keep the equation balance , anyone can help ? Thank you
Over the past 11 years, there were 4 years with negative ROE. Even for those positive ROE years, the average was 5%. Not an exciting company from a fundamental perspective. You should not be surprise about the price drop over the past 1 year. Not a stock for the fundamental investor. But if you are a technical trader, this is a different story
I never expect he is that easy to believe whatever people said that can not be verfied because it is confidential. The statement Can not verify itself is already a contradiction . He is too easily cheated . One mistake after another . Now we have good reason to scold him stxxxpid
Soon, I know something is brewing , if I do not mislead him , how can I collect enough at cheap price . Just a small pump already turn the chart bullish . How to build the base ?
I hope sslee will talk more here . But it seem his talk gain no credibility now . Before he open his mouth , people already know what song he is going to sing .
Last week, sifu said, 0.18 was very cheap already and asked them not to write anything negative to mislead investors and now is proven sifu is right ..... many non-bumiputera dun believe, but bumiputera investora likes Fatimah, Latifah, Sharifar, Aminah .... believed and bot a lot, now laughing all the way to banks .......
wait for the correction , when a new height to be formed and once the resistanance at the previous height is breached , then a reversal is confirmed . it is safe to test you luck then
for those who had already sold and wish to buy back , now is the time to buy . wait for the reversal is confirmed . although enter at this point is a bit late , but posibility of been trapped will be very much reduced . good lucks
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
i3lurker
14,389 posts
Posted by i3lurker > 2023-07-19 19:13 | Report Abuse
Those who are slightly and or marginally affected by the "Sorry about the mistake" please reconsider your trip to Penang Bridge.