What Are the Pros and Cons of Stock Options?

Stock options refer to the buyer's right to buy or sell a certain number of relevant stocks at the agreed price before the expiry date stipulated in the contract or before the expiry date after the payment of the option premium. It is one of the many ways to motivate employees and belongs to the category of long-term motivation.

Stock options

Stock options
Stock options, as an incentive in corporate management, originated in the United States in the 1950s and matured in the 1970s and 1980s, and are used by most public companies in the West. Chinese stocks
(One)
China is not yet open
stock
(1) Establishing a salary management committee or stock
General stock
American Accounting Principles Committee Opinion 25
Opening of stock options account launch Song Qinghui: increase brokerage business income by 20%
The Shanghai Stock Exchange has convened securities dealers to conduct stock option risk control training, and at the same time required the securities dealers to make preparations for stock option account opening, etc., the stock option account opening work will be officially launched.
The source said that the focus of the work of the securities dealers and exchanges is on stock options. The stock options will be launched on February 9, 2015. From next week, the securities dealers will officially start account opening work and allow the brokers to open accounts for about two weeks. The person predicts that although the stock option threshold and the Hong Kong Stock Connect threshold are both 500,000 yuan, the stock option requirements are higher, especially the knowledge test is more difficult, so the number of account openings will be less than that of the Hong Kong Stock Connect.
Economist Song Qinghui said that the formal launch of stock options will benefit brokers for a long time and have a substantial impact on brokerage income: first, increasing commissions for stock brokers in the stock brokerage business, and second, for brokers directly trading in stock options Earned commissions in the business [2] . [3]

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