Vesting

Vesting refers to stock or stock options which are earned by the holder over time. For example, a company employee may be given stock options that vest over a three year period. In this case, if the employee quits after one year, only one-third of the options will have been vested and the remainder would be forfeited.

Similar financial terms

Seed investing
Investment by a venture capital firm in a company before it has a real product or is even clearly organized as a company.

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Cost-benefit ratio

The net present value of an investment divided by the investment's initial cost. Also called the profitability index.


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