As part of your employer’s compensation package, you may be holding stock options. And with the market’s recent advance, these may be back in the money after, perhaps, several years of being underwater. You may have even forgotten about some options you may have received during the mid-2000s.
To review, an employee stock option is a call option or contract that gives you, the employee, the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price. Once vested, options can be exercised anytime between the purchase date and the expiration date. According to the IRS, stock options expire a maximum of ten years after they are granted. Read More→