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Ito’s Lemma

A stochastic process where the change in the price of a derivative during each short period of time has a...

Share Option

A contract that confers on the holder the right, but not the obligation, to subscribe to the shares of an...

Cash-Settled Option

An option that is settled for cash, instead of its underlying being actually delivered following exercise of the option. The...

Exercise By Exception

An exceptional procedure to exercise expiring in-the-money options in order to protect option holders against their options turning out-of-the-money. This...

Vesting Period

The period during which all the vesting conditions set out in a share-based payment arrangement have to be satisfied. Vesting...

Basic EPS

It stands for basic earnings per share; the ratio of net income available to common shareholders to common shares outstanding:...

Basic Earnings Per Share (EPS)

The ratio of net income available to common shareholders to common shares outstanding: This ratio doesn't take into account the...

Dilution Factor

Dilution is the extent to which shareholder value erodes due to transfer of value created by their share holdings to...

Dilution

Effect on earnings per share (EPS) and book value per share if all convertible securities (convertible bonds, convertible debentures, etc)...

Backdating

The practice of issuing an employee stock option on a date preceding the actual date of grant. This usually occurs...