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About Stock Option Agreements Such an option, once granted to the employee, gives the employee the opportunity to benefit from increases in the company's share value by granting the right to buy shares at a future point in time at a price equal to the fair market value of such shares at the time of the grant.
There are five types of share repurchases: fixed price tender offer, Dutch auction tender offer, open market share repurchases, transferable put right distribution and targeted stock repurchases.
What Is a Stock Option? A stock option gives an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date. There are two types of options: puts, which is a bet that a stock will fall, or calls, which is a bet that a stock will rise.
Stock options are agreements between a company and its employees that allow the employees the right to buy a certain number of company shares at a set price also called the strike price within a set period of time, usually for a period of 90 days.
A repurchase right gives the originating company the right to buy back the sold stock from the shareholders if certain conditions are met. The company does not have to exercise the right, and if it doesn't, the shareholder retains the rights to the stock.