Bullet Dodging
外汇网2021-06-19 13:46:10
55
A form of option granting in which the award of options is delayed until a piece of bad news becomes known to the public and the stock's price falls. Because an option's strike price is often determined by what the underlying stock's price is on the grant date, waiting for the stock price to drop allows option holders to gain some additional benefit in the form of a lowered strike price.
For example, suppose that XYZ Corp. had planned to grant stock options for its CEO on May 7, 2007. However, XYZ Corp. is going to release its earnings a week later, on May 14, and it is believed that the earnings will be under guidance. Because the company didn't meet its earnings projections, the share price will likely drop. Moving the option-granting date to May 15 is likely to cause the option's strike price to be lower compared to if the grant date had been on May 7.This practice is fairly controversial, as some feel that bullet dodging may be a form of insider trading because the option holder, who is usually a member of the company's management, will benefit by using information that is not available to the public.
标签:
- 上一篇: Baptism by Fire
- 下一篇: Asset Valuation Reserve - AVR
随机快审展示
加入快审,优先展示
推荐文章
- 黑马在线:均线实战利器 7989 阅读
- 短线交易技术:外汇短线博弈精讲 3444 阅读
- MACD震荡指标入门与技巧 3576 阅读
- 黄金操盘高手实战交易技巧 3794 阅读
- 做精一张图 2734 阅读
热门文章
- 港币符号与美元符号的区别是什么啊? 21694 阅读
- 我国各大银行汇率为什么不一样啊? 9765 阅读
- 越南盾对人民币怎么算的?越南盾对人民币汇率换算方法是什么 8928 阅读
- 黑马在线:均线实战利器 7989 阅读
- 小白经济学 7564 阅读