As a young gun in the industry, you might not care about your employee stock options, but for those who pay attention, the benefits are enormous. In this article we are going to look at two things, first what exactly are employee stock options, and secondly why you should care and take advantage of them.
What are stock options
Investing in the stock market can be extremely rewarding, but not without risk. While most investors understand that market volatility is a given in the stock market, for those trying to decide whether to invest in stocks, the volatility alone gives them pause. A lot of people are too risk averse to be comfortable investing in the stock market. They want a sure thing when it comes to investing their hard-earned cash. Unfortunately, a sure thing that also offers dividends is hard to find.
If you don’t know the difference between asset-backed securities and securities, you may want to take a look at these common financial terms and their definitions.
Asset Backed Securities
Asset-backed securities are bonds or notes that are backed by assets such as credit card accounts receivable, auto loans, and home equity loans.