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Stock Options

Stock Options FAQs

Q: What is a Stock Option?
A: A stock option is being able to buy a certain amount of shares of a company at a specific pre-set price for future date.

Q: Am I able to sell my stock option at any moment?
A: No, you cannot. When purchasing a stock option they initially come with a vesting period, which usually lasts 4 to 5 years. Throughout the course of the vesting period, you are only able to sell the portions of the shares, which have already vested through time.

Q: Is there a specific contract size on a stock option?
A: The size of a stock option contract is 100 shares. This number can change depending if the contract is adjusted in the event of consolidation, stock split, or reverse stock split.

Q: What is the expiry date?
A: This is the date, which the right to call or put options ends. The last trading day for stock, options expire on the Saturday following the third Friday at noon.

Q: What is a pre-set price?
A: A pre-set price is the price that the stock is trading on when the stock option is issued. A pre-set price is also known as, a grant price or strike price.

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