What is the difference between stock options and stock grants?
- The world of investing can be overwhelming…for many people.…The opaque language, the accounts required,…the conflicting advice.…It's really not easy,…and I say that as an investment advisor.…So, it's no surprise…that when people are offered stock options or stock grants…as a part of their job offer, it can be overwhelming…to figure out what they actually mean.…So, first, some definitions.…A stock is a share of ownership in a company.…If you're working hard to make your employer successful,…it's pretty great to get a share…of the fruits of your labor.…
Stock plans are often used to incentivize…and retain key employees.…They're usually included in job offers,…as well as ongoing bonuses.…There's two main ways…that shares can be included in a compensation package,…stock options and stock grants.…The difference is important,…as there's value and tax implications, especially in the US.…A stock option is basically the right…to buy shares of the company you work for in the future…but at today's price.…If things go well and the company grows,…
Skill Level Intermediate
Personal Finance Tips and Trickswith Jane Barratt2h 58m Appropriate for all
Financial Wellness for Couples and Familieswith Amanda Clayman1h 7m Appropriate for all
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