The advantages of stock options are clear, but often, there are also some major disadvantages, which have recently caused more and more companies to drop them. If the stock value of a company drops, then the employees of that company become unable to exercise those options, while the company still has to report the associated expenses. Additionally, the stockholders face the risk of option overhang. Overall, a bad situation for everyone. But there are ways to solve these issues. Enter the Knockout Stock.
A novel solution for eliminating the bulk of risk, in addition to rewarding employees and increasing a company’s value with stock options. Knockout stock options are unique because they offer protection against problems such as option overhand by expiring once the share value of a company falls below a certain value. These options additionally retain identical time limits and vesting requirements to traditional stock options, making them the perfect choice for secure and effective stock options. Providing employees with a strong incentive to work hard and keep their company’s value up, and rewarding that hard work by giving them more earnings as stock price increases, knockout stocks provide the benefits of stock options with added security.
Jeremy Goldstein is a veteran of the financial industry, with over 15 years of experience as a business lawyer. With insightful views on stock options, insurance, business law, or any other field of finance, Goldstein is knowledgeable and capable.
Throughout his illustrious career, Goldstein has been part of some of the largest business transactions in recent history. His clients have included financial titans such as Bank One, AT&T, Verizon, Chevron, and many others. He offers a level of excellence that simply isn’t matched anywhere else. With his years of experience and his insight into the inner workings of the financial industry, he’s become extremely successful and is eager to share the secrets to that success.
To learn more, visit http://jlgassociates.com/.