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stock question

robphelan

robphelan

Diamond Member
Our employer gives many of us stock options yearly. Now, our stock is at an all time high... later this month employee options will vest.

question is: when there is a semi-rush to cash in vested options, will that have a large enough impact on the price of the stock to drop it siginificantly?
 
Look at the average daily volume that your company's stock trades (can find this on finance.yahoo.com and other sites). Compare that to how many options you think will be cashed in. If you think the number of options cashed in will be many times the average daily volume, it could have an impact if it's done all at once.

Do you know for sure that when options are cashed that an actual transaction is being done on the stock market? My understanding is that some companies just give you the money and actual stock isn't actually sold.
 
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