As a financial advisor, I often work with clients to navigate the complexities of stock options. These financial instruments offer unique opportunities for wealth creation, but they also come with risks and nuances that require careful consideration.
Stock options give employees the right to buy company shares at a predetermined price within a specific timeframe. They serve as a powerful tool for companies to attract and retain talent, aligning employee interests with company performance.
This guide will explore the fundamentals of stock options, their types, tax implications, and strategies for maximizing their value. Whether you’re an employee receiving stock options or an investor considering options trading, this comprehensive overview will equip you with the knowledge to make informed decisions.
