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The Theory And Design Of Stock-Options

Posted on:2003-07-19Degree:MasterType:Thesis
Country:ChinaCandidate:K LiFull Text:PDF
GTID:2156360065455338Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Stock-options is a right that staff can purchase a mount of company's stock in a certain year. This certain price is called "vested" price, "promised" price or "enforced" price, usually it is the market price of the company stock when the stock-options is granted. The staff who got the stock-options hope the company's stock increased in value, so that they can purchase company's stock in such a low price through enforced options.Then ,they can sale the stock in a high market price and receive cash.Usually the company can prescribe the vesting period of the staff through stock-options. This regulation is called "waiting period", the staff is requested to work for the company at least a certain year (about 3-5years)as a rule, so that they can purchase the stock according to the stock-options plan unless their stock -options is cancelled. The common way is that can be executed when the stock -options are expired. In a sort of instances, the stock-options only to be executed when they reach a certain financial target (this kind of options is called performance options).This thesis provides a scheme about how to practice stock-options in China according to our country's situation under researches on some overseas countries with a high level in market economy system. Such as how to manage the stock -options plan, how to design the stock resources of the exercise, how to evaluate the price of the stock-options or how to process accounting management on stock-options, etc.There are lots of ways on how to fix a price on option overseas, and there is also a expert institution to settle this problem, such as NCEO in America. In china, it's still a blank of how to fix a price and design stock-options, and also in legal field. The author's aim is to express his understanding so that to make up this blank.
Keywords/Search Tags:long-term incentives system, stock-options, china, stock-options plan
PDF Full Text Request
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