Farhat, I have been involved in 10-k fillings and reporting for 12 years. This is called shares based compensation and a company issues stock award to its employees which are invested in yearly basis(generally not subject to performance KPI). Option is a derivative as we value it using BSM or Monte Carlo method etc. and generally issued in connection with financing arrangement to compensate risk of a bank.
Hi Farhat, When the executives exercise 60% of the shares, pic stock option goes to zero (in regards to the 60% portion) however pic excess par and common stock goes to 180k. Now, if we consider 1200 new stock issued, then we can derive that the price per share is $150, while your example is stating that the market price is $80. How should I think about this?
Farhat, I have been involved in 10-k fillings and reporting for 12 years. This is called shares based compensation and a company issues stock award to its employees which are invested in yearly basis(generally not subject to performance KPI).
Option is a derivative as we value it using BSM or Monte Carlo method etc. and generally issued in connection with financing arrangement to compensate risk of a bank.
Hi Farhat,
When the executives exercise 60% of the shares, pic stock option goes to zero (in regards to the 60% portion) however pic excess par and common stock goes to 180k. Now, if we consider 1200 new stock issued, then we can derive that the price per share is $150, while your example is stating that the market price is $80. How should I think about this?
How did you get to $178,000 of "paid-in capital in excess of par" after the executives exercised the options?
you forgot to put this video in your chapter 16 playlist
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