Employee Stock Option Plans

Description
An employee stock option plan enables employees to purchase their company's stock at a stated price and, if they wish to do so, resell it at some point in the future, at the then current market price. Employee stock option exercise plans are designed to help employees exercise the stock options offered by their employer. These plans provide all the forms and step-by-step instructions needed to take advantage of an employee stock option plan. Companies may also lend employees the money necessary to purchase the stock.

Objective
Employee stock option exercise plans are designed to reduce time, to simplify the process of purchasing the company's stock, and to provide loans to take advantage of stock option plans.

Suitability
Employee stock option exercise plans are suitable for clients who work for companies providing employee stock option plans.

Product Features
The features and costs of a stock option exercise plan vary from firm to firm. However, they may include:

• Step-by-step instructions and paperwork; and
• Loans up to 100 percent of the money needed to exercise the stock option.

Employees are offered these three choices for exercising employee stock option plans:

• Exercise the stock option and sell the stock immediately
• Wait until the stock reaches a certain price and sell the stock at a predetermined price range
• Exercise their stock option and hold the shares

For more information, please contact your local financial advisor.