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A stock grant is also known as an employee grant. An example of this would be a company granting a new employee 50 shares of shock that are vested over a period of two years. This entails that the employee is going to gain this stock only once these two years of working at the company are completed.
It can provide significant financial benefits If the stock value increases, you could make significant financial gains?but only if you've exercised (purchased) your options. And you can only do that if you've accepted your grant.
Remember: If you hope to purchase and sell your stock someday, accepting your stock option grant is the first step you have to take.It doesn't cost anything to accept the grant, and you're not obligated to actually exercise your options.
A stock option is the right to buy a specific number of shares of company stock at a pre-set price, known as the ?exercise? or ?strike price.? You take actual ownership of granted options over a fixed period of time called the ?vesting period.? When options vest, it means you've ?earned? them, though you still need to ...
When the stock options are granted, the total stock option compensation expense is calculated as the fair market value of the stock options x the number of options granted. The company would debit stock option compensation expense and credit ?equity APIC ? stock option?.