About the transfer of company options to employees?

Company options are options issued by companies that have not issued shares. They will have a subscription price and an expiration date. For example, XYZ 25c will expire on June 30th, 2002, and can be listed in ASX before that. If the stock price exceeds the subscription price at maturity, the option holder will exercise his option by paying the subscription price, and when the option is issued in the company as a new share, he will enjoy the same treatment as other ordinary shares. Company option is a way for the company to raise additional capital at some future time (validity period), but there is no guarantee that the stock price will definitely exceed the option subscription price at that time. Company options are also used as employee incentives and can be linked to performance, but these stocks cannot be listed in ASX.

Exchange-traded options (ETO) are derivatives issued on existing stocks, and each option consists of 1000 shares of the relevant company's stock. There are two kinds of ETO-the buyer's option, which gives the buyer the right to buy shares at a specific time and at a specific price; The seller's option gives the buyer the right to sell the company's shares. All ETOs have an agreed price and maturity date, and each stock has its own series of categories. Usually, ETO is only issued for large-cap stocks with good liquidity. Both the seller and the buyer in the option (usually called option seller) have the obligation to sell in the buyer's option or buy in the seller's option. Investors should be aware of some risks related to ETO, especially when selling options. Investors can use options in a variety of ways, including reducing the risk in the portfolio, increasing leverage to make a profit or just for trading. ETO can provide benefits when the market fluctuates. In any case, you should consult your agent. They should provide you with a detailed explanation of the ETO market before the transaction. Because of its low price, company options and exchange-traded options can provide investors with leverage when the company's stock price rises, while company options are more risky when the stock price falls, and they will not get dividend rights.