Search icone
Search and publish your papers

The effects of stock options on markets

Or download with : a doc exchange

About the author

etudiant
Level
General public
Study
political...
School/University
sciences po...

About the document

Published date
Language
documents in English
Format
Word
Type
presentations
Pages
4 pages
Level
General public
Accessed
3 times
Validated by
Committee Oboolo.com
0 Comment
Rate this document
  1. Introduction: Do you know this man?
  2. What is a stock option?
    1. Stock options characteristics
    2. Stock options and employee ownership
  3. Incidence and effects of stock options
    1. European stock markets
    2. Stock options influence on behaviour: Myth or reality?
  4. Conclusion
  5. Bibliography

Traditionally, stock option plans have been used as a way for companies to reward top management and "key" employees and link their interests with those of the company and other shareholders. More and more companies, however, now consider all of their employees as "key." As a result, there has been an increase in the popularity of broad-based stock option plans, particularly since the late 1980s. Publicly traded companies such as Pepsico, Starbucks, Southwest Airlines, and Cisco now give stock options to most or all of their employees.

I What is a stock option ?
1. Stock options characteristics
2. Stock Options and Employee Ownership
II Incidence and effects of stock options
1. European stock markets
2. Stock options influence on behaviour : myth or reality ?

[...] Firstly by defining stock options characteristics then by analyzing its incidence and effects on employees' behaviours (II). I What is a stock option ? 1. Stock options characteristics A stock option gives an employee the right to buy a certain number of shares in the company at a fixed price for a certain number of years. The price at which the option is provided is called the "grant" price and is usually the market price at the time the options are granted. [...]


[...] This type of argument also rests on the assumption that the stock market is myopic, and that managers adopt short-term horizons to meet investor expectations. As a conclusion, stock options have been designed as a tool for recruiting, motivating and retaining high calibre employees, whatever their position. However, aside from the economy? small companies, where stocks were widely targeted at all levels of employees, this mainly affects managerial employees. It means that option plans have partly failed to achieve their goals, due to their mixed results. [...]

Similar documents you may be interested in reading.

The effects of stock options on markets

 Economics & finance   |  Finance   |  Presentation   |  09/29/2010   |   .doc   |   4 pages

The Truth behind Stock Options: The Reasons Why They Don't Work

 Economics & finance   |  Finance   |  Presentation   |  09/29/2010   |   .doc   |   14 pages

Top sold for finance

Yale University Investments Office: August 2006 case analysis

 Economics & finance   |  Finance   |  Case study   |  08/17/2009   |   .doc   |   8 pages

Company budgeting

 Economics & finance   |  Finance   |  Term papers   |  06/21/2010   |   .doc   |   4 pages