What Are Stock Awards and Stock Options?

Nevertheless, both a lattice model and the Black—Scholes—Merton formula , as well as other valuation techniques that meet the requirements … can provide a fair value estimate that is consistent with the measurement objective and fair-value-based method…. The US GAAP accounting model for employee stock options and similar share-based compensation contracts changed substantially in as FAS revised began to take effect. Companies are offering this benefit not just to top-paid executives but also to rank-and-file employees. Stock option expensing was a controversy well before the most recent set of controversies in the early s. The earliest attempts by accounting regulators to expense stock options in the early s were unsuccessful and resulted in the promulgation of FAS by the Financial Accounting Standards Board which required disclosure of stock option positions but no income statement expensing, per se.

From the employee's standpoint, a stock option grant is an opportunity to purchase stock in the company for which he or she works at a lower price. Typically, the grant price is set as the market price at the time the grant is offered.


The American Journal of Clinical Nutrition in 2004 published a systematic review of meta-analyses and clinical trials on dietary supplements for weight loss by complementary medicine researchers at the Universities of Exeter and Plymouth. None of the over-the-counter weight loss aids worked, including garcinia cambogia.

Late in 2010 the peer-reviewed Journal of Obesity published a meta-analysis of studies testing the garcinia as a weight loss aid. Of the 23 trials they identified, 12 were methodologically sound enough to include in their analysis. The analysis revealed that some statistically significant weight loss occurred, but the magnitude of the effect is small and the clinical relevance is uncertain.

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Both stock options and grants are supposed to motivate the employee to go home later, work harder and help the company's stock appreciate. It's to the employee's advantage since the more the firm's shares are worth, the more the employee stands to gain. Stock Options. Stock options work by a company granting its employees a certain number of stock options at a set price, time-limited; the employee can purchase a set amount of stocks at a set price within a specified time frame. Generally, the amount the employees pay is less than the current market price. If you are in line for an options grant, you must carefully go through your company’s stock options plan, as well as the options agreement, to determine the rights available and restrictions.