what is ESOP? Explain any 2 terms associated with ESOP? (3 Marks)
Dear Student,
ESOP refers to Employee Stock Option/Ownership Plan, wherein the company issues shares to its employees at price lower than the market rates, or without any upfront fees. Employees have the option to These options are provided to motivate employees for better performance and provide them with sense of ownership in the company.
Terms related to ESOP are :
a) Grant Date: It is the date when options are granted to the employees.
b) Exercise Period: It is the period within which employees should exercise the option. The date on which option is exercised is called the exercise date.
Regards,
ESOP refers to Employee Stock Option/Ownership Plan, wherein the company issues shares to its employees at price lower than the market rates, or without any upfront fees. Employees have the option to These options are provided to motivate employees for better performance and provide them with sense of ownership in the company.
Terms related to ESOP are :
a) Grant Date: It is the date when options are granted to the employees.
b) Exercise Period: It is the period within which employees should exercise the option. The date on which option is exercised is called the exercise date.
Regards,