STOCK GRANT Meaning and
Definition
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A stock grant refers to the act of offering shares of stock from a corporation to employees or other individuals as a form of compensation or incentive. It is a type of equity compensation plan that aims to reward or motivate employees by providing them with ownership in the company.
A stock grant is typically granted to employees by their employer as a means to align their interests with the company's overall goals. It serves as a long-term incentive, encouraging employees to work towards the organization's success and boosting employee retention. The purpose is to give employees a stake in the success or growth of the company, so they become more invested in its performance.
When a stock grant is given, the recipient does not have to pay any immediate cash outlays. Instead, they are granted shares or stock options at a predetermined price or based on performance criteria. These shares may vest over a specific period, meaning that the employee gains ownership rights gradually, usually contingent upon continued employment.
Stock grants can take various forms, such as restricted stock units (RSUs) or stock options. RSUs represent a promise to deliver shares in the future, typically upon vesting conditions being met. Stock options grant the right to buy company shares at a predetermined price, known as the exercise price.
Overall, a stock grant is a method companies use to reward and align the interests of employees with the company's success, fostering a sense of ownership and motivation among the workforce.
Common Misspellings for STOCK GRANT
- atock grant
- ztock grant
- xtock grant
- dtock grant
- etock grant
- wtock grant
- srock grant
- sfock grant
- sgock grant
- syock grant
- s6ock grant
- s5ock grant
- stick grant
- stkck grant
- stlck grant
- stpck grant
- st0ck grant
- st9ck grant
- stoxk grant
- stovk grant
Etymology of STOCK GRANT
The word "stock grant" is a compound term comprised of two separate words: "stock" and "grant". Here's the etymology of each word:
1. Stock: The word "stock" originated from the Old English word "stoc" or "stocc", which meant a stump or a post. Over time, it developed additional meanings such as a trunk, a log, or a block of wood. In the financial context, "stock" specifically refers to shares or ownership in a company.
2. Grant: The word "grant" comes from the Old English word "grantan", which meant to "give" or "bestow". It is derived from the Latin word "granum" meaning "grain" or "seed", signifying the idea of something given or produced. In a financial context, a grant typically signifies the act of giving or conveying property, money, or rights.
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