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26-Apr-2020 03:02

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Stock option grants are usually offered to employees after they have worked at the company for a set period of time.

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For the holder, the potential loss is limited to the price paid to acquire the option. No shares change hands and the money spent to purchase the option is lost. Options, like stocks, are therefore said to have an asymmetrical payoff pattern.

Non-qualified stock option (NSO) grants can be transferred to a child or a charity, depending on the specific company's policies.



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