skinnyglassesgirl
New member
I currently work for a company that gives restricted stock awards/grants. I have been offered a position with a company that is offering me both restricted stock awards/grants and stock options.
I have never dealt with stock options before, but I think that I do know how they work. If I agree to the stock option plan, I will have the option to purchase 1,000 shares that will vest over 3 years and expire within 10 years. I realize that if the price of the stock is $10 when the plan goes into effect and I exercise the vested options at $30, I will pay the $10 a share and "earn" $20 profit per share. My question is, if the stock price never goes above the price of the shares when the plan goes into effect, do I have to exercise my options and end up losing money? Might be a stupid question, but I don't know the answer! Thanks!
I have never dealt with stock options before, but I think that I do know how they work. If I agree to the stock option plan, I will have the option to purchase 1,000 shares that will vest over 3 years and expire within 10 years. I realize that if the price of the stock is $10 when the plan goes into effect and I exercise the vested options at $30, I will pay the $10 a share and "earn" $20 profit per share. My question is, if the stock price never goes above the price of the shares when the plan goes into effect, do I have to exercise my options and end up losing money? Might be a stupid question, but I don't know the answer! Thanks!