What to call stock benefit type stock option in English?
In my language, as a type of stock option there is stock option which is given at the time of retirement from work instead of retiring allowance. Retired worker will sell this stock option to get cash. According to my limited knowledge about this stock option is like this if it's not wrong.
What is this stock option called?
Thanks...
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Answer by Heaven K
I don't mean to be rude, but the grammar is hard to understand.
Are you asking:
- a person is given a stock option to purchase? An option is a contract to buy a stock at a later date for the price today, which may be higher or lower on the market at that time. If you create the option when the stock price is low, buying it when it is high locks in immediate profit for you, since you would turn around and sell it for profit.
- a person working for a company, as one of their benefits, is offered stock in the company, over the course of their time working there. When they retire, and the company stops giving them stock, they end up with an amount of stock, which they can sell for profit.
This is called stock compensation. You are "compensated" with stocks, instead of being paid that exact money. Hopefully, for you, the stock price will go up, and you end up with more money than the stock was originally worth.
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