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Community: Investing Wiki

Term Of The Hour

employee stock option: Original post by Slav Fedorov of Demand Media A company can issue new shares in a variety of ways: sell stock to investors, grant stock options to its employees or contribute stock to employee retirement accounts or pension plans. The effect of new stock issuance on the share price depends on multiple factors such as how many shares are issued relative to the number of shares outstanding (already…

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