Exercise

An action by a stockholder taking advantage of a privilege offered by a company or other financial institution. This includes warrants, options, and other exotic financial instruments.


When you exercise your stock option, you "trade in" your options for the actual stock.



Option Compensation - Part One - This article will provide investors with key definitions and a historical perspective on the positive and negative aspects of using options for compensation.

Option Compensation - Part Two - Read up on the debate over whether or not to expense options.
Related Terms

Cashless Exercise

Option

Strike Price

Warrant

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