What does exercising stock options mean?

The second reason is if the current stock price is lower than the strike price, which is the price that your option allows you to buy it at. read more

For example, if the current stock price is $75 per share and your strike price is $50 per share, then by exercising your option you can buy the shares at $50 and immediately sell them for the current market price of $75 for a $25 per share profit (less applicable taxes, fees, and expenses). read more

Stock options give you the right to buy and sell shares at a predetermined price. You can contract to buy stock options or you may receive options on company stock as part of your employee compensation. You exercise your option when you use it to make a stock trade for the agreed-on amount. read more

What does 'Exercise' mean Exercise means to put into effect the right specified in a contract. In options trading, the option holder has the right, but not the obligation, to buy or sell the underlying instrument at a specified price on or before a specified date in the future. read more

To exercise stock options means that you choose to buy or sell the stock. Types of Stock Options Some companies give their employees stock options: the option to buy company stock at a specified price. read more