Stock Options vs RSU Differences and Similarities

Stock options and RSU are forms of employee equity compensation that employers give to employees. They are generally the most common forms of equity compensation. Despite their similarities, stock options vs RSU differ in terms of how they are taxed, their vesting, and the form of compensation that the employee receives. Hence, they are entirely … Read more

Call and Put Options Examples

Call and put options are types of equity options that give their holders, otherwise known as the buyer the right to buy or sell the associated underlying shares of the options. These options are traded on major exchanges like New York Stock Exchange Arca (NYSE Arca) and New York Stock Exchange America (NYSE American), because … Read more

Repricing Stock Options

Repricing stock options implies changing the price of stock options when the market value of stocks falls below the initial grant price. The purpose of this is to give room for the employees to exercise underwater options at the new grant price. If for example, the initial exercise price also known as the grant price … Read more

What is a Call Option? Example and Problems

Options refer to financial derivatives that give buyers the right, but not the obligation to either buy or sell underlying assets such as stocks, bonds, commodities, etc., at a predetermined price and date. These derivatives comprise call and put options. Put options allow buyers to profit when there is a decline in the price of … Read more

Incentive stock options tax treatment

Incentive stock options tax treatment was created by the Revenue Act of 1950. The stock option grants became popular in the following decade as a form of compensation for executives and employees. These contracts give the holder the right but not the obligation to buy or sell a stock at an agreed-upon price and date. … Read more

Warrants vs Stock Options Differences and Similarities

Stock warrants and stock options differ in many ways but are also similar which can be confusing to people. The terms stock warrants and stock options are frequently used when talking about financial investments, but not everyone is aware of the differences between the two; even investors who deal with stocks on a daily basis … Read more

Put Option Example and Problems

Options are financial derivatives that offer buyers the right, but not the obligation, to buy or sell underlying securities such as stocks, bonds etc at a predetermined price and date. These derivatives can be divided into call options or put options. Call options allow buyers to profit when the price of the security increases, while … Read more

Equity Options: Examples and Types

Equity options are a form of derivative that gets their value from the underlying asset attached to them. They are exclusively used to trade shares of companies as their underlying assets. Here we shall discuss equity options examples and types. We shall also see the equity options formulas used in calculating the potential profits or … Read more

What is low float stock?

Low float stock meaning Low float stocks can be more volatile than stocks with higher float. This is because there are fewer shares available to trade, so any buying or selling activity can have a greater impact on the price. Low float stocks can also be more difficult to trade, as there may not be … Read more

Finance Float Calculator: Floating stock Calculator

Free float gives you the number of shares available for anyone to purchase or sell in the stock market, this shows it subtracts the number of any restricted shares (or locked-in shares) from the outstanding shares. Not all outstanding shares are available for trading; some are locked or restricted and such cannot be traded. Examples … Read more