It’s no secret that stock markets are risky, and when they move in the desired direction it means good times for shareholders. However, what goes up will inevitably at some point come down, and sharp downward movement can herald a stock market correction or even a full-on crash.
This has created a situation in which many companies and employees are grappling with the reality of underwater stock options. What that means is that anyone looking to exercise their options would have to pay more for the shares than the actual trading price.
Unsurprisingly, participants will not want to exercise options while that is the case. So what does this all mean for those with employee stock ownership plans (ESOPs)?
Find the answer here!
