Repricing is the process of resetting the price of a product or service in order to remain competitive or to respond to changes in the market. This can be done on a regular basis, in response to changes in demand or costs, or in reaction to a one-time event.
What's the meaning of backdating?
Backdating is the practice of dating an document or contract prior to the date it was actually signed or executed.
For example, if a company enters into a contract with a vendor on January 1, 2018, but the contract is not actually signed until January 5, 2018, the company may choose to backdate the contract to January 1, 2018.
The rationale for backdating is typically to take advantage of a lower price or rate that was available at an earlier date.
Backdating can be considered fraud if the intent is to misrepresent or hide information from another party, such as in the case of insurance contracts, where backdating may be used to make it appear that the policy was in effect prior to the date of an accident, which would make the policy ineligible for a claim. Can RSUs be underwater? RSUs can absolutely be underwater. In fact, they often are when the stock price falls below the strike price.
Why did Google reprice its stock options? According to a report from The Wall Street Journal, Google repriced its stock options in order to keep its employees from leaving the company. The report states that the move was made in order to "retain top talent."
Google has not commented on the report, so it is unclear if the move was made specifically to keep employees from leaving. However, it is common for companies to reprice stock options in order to attract and retain employees.
Stock options are a type of compensation that allows employees to purchase shares of the company at a set price. The price is typically set at the current market value, but it can be below or above the market value.
If the stock price increases, employees can make a profit by selling the shares. This can incentivize employees to stay with the company in order to make money from the stock price increase.
Google stock has increased significantly in recent years, so re-pricing the stock options could have been done in order to keep employees from cashing out and leaving the company.
Overall, it is likely that Google repriced its stock options in order to keep its employees from leaving the company. The move could also be seen as an attempt to attract and retain top talent.
What does underwater stock mean?
Underwater stock means that the stock price is lower than the price at which the stock was purchased. This can happen for a variety of reasons, including a general decline in the stock market, a decline in the specific company's stock, or a personal decision to sell the stock.
What can I do with options underwater?
There are a few things you can do with options underwater:
- Sell the options
- Exercising the options
- Let the options expire
If you're selling the options, you're essentially selling the right to buy or sell the underlying asset at a specified price. The buyer of the option pays you a premium for this right.
If you're exercising the options, you're using the right to buy or sell the underlying asset at the specified price.
If you're letting the options expire, you're giving up the right to buy or sell the underlying asset at the specified price.