Knockout Options & How They Work From Jeremy Goldstein

There is no denying that today’s economic times are some of the toughest we have seen without being in a full-fledged depression in our nation. Evidence of the tough times can be seen in not only the everyday lives of people but it also has an effect on the larger corporations.


One of the ways that many corporations are attempting to cut back expenses is to alter the way they give their employees benefits. Some corporations have stopped the once common practice of giving their employees stock options in the company itself, often a worthwhile incentive for both the employer and employee.


The problem is that the stock could take a huge drop in value, which makes it nearly impossible for employees who receive stock options from redeeming their value. This has caused many employees to have a negative outlook on this form of additional benefit offered from companies.


Additionally, being a recipient of stock options carries with it the necessity of additional accounting and figuring into budgets and can end up outweighing the actual benefit that is provided by the stock option itself.


Regardless of some of the risks and downsides, many corporations are still using stock options as an additional payment package or benefits package for their employees. The reasoning is simple, in that stock options are easily understood by all employees.


One of the leading financial minds of our time, Jeremy Goldstein, has a unique outlook on stock options. If the company offering the stock options does so in the correct method, it can yield hugely beneficial results for both the employee as well as the company itself.


Jeremy Goldstein proposes these knockout options for corporations to provide for their employees. Knockout have the same time limits as well as vesting requirements as a traditional stock option but knockouts simply change the expiration terms of the option. Learn more: