Read the full article on how does the calculator work, what’s the purpose of it and what you have to keep it mind when using it
What are stock options?
They are a financial instrument that give a right to buy shares in the company in the future at a fixed price. They are commonly used as incentives for employees, allowing them to purchase company shares at a predetermined and often advantageous price. The value of stock options can change based on how well the company is doing.
How can I get money from my stock options?
You can get money when you sell your shares. First, you need to wait for them to vest and then you need to buy them, after which you can sell them.If the company is successful, it will be possible to sell the shares at a higher price than the price you bought them for, thus enjoying financial rewards.
What are the risks associated with options?
The value of options can go up or down depending on the success of the company. They could end up being worth a lot or nothing at all.
Are stock options taxed?
Yes, typically, the gains from options are taxed. What taxes and at which point they should be paid, depends on certain factors, for example, how long you hold the shares, what the strike price was, where you are a tax resident or in which country you work. In more complex cases, it is a good idea to consult with a tax professional to help you to understand your tax obligations.
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