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What are restricted stock options?

In: Investing and Financial Markets, Stock Market, Stock Options and Futures [Edit categories]

Answer:

Restricted stock options are usually granted by employers to executives as a means of compensation. A stock option itself, is the right to purchase shares in the business for an agreed upon price (determined by market value at the time of the option's issuance) regardless of future price values. A restricted stock option is true to it's namesake; it is restricted in that the option will never allow for the purchase of stock at lower than 85% of the current value of the stock being purchased.

First answer by Jtmortica. Last edit by Jtmortica. Contributor trust: 2 [recommend contributor ]. Question popularity: 2 [recommend question].

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