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What You Need To Know About Employee Stock Options

You may have heard the mention about employee stock options quite a few times, but may have wondered what these are exactly and how you as a common employee can actually benefit from it. Let us learn in this article about the whole concept of employee stock options (ESO) and how they can be of great benefit to you.

What Is An Employee Stock Option?

Employee stock options (ESO) are contracts granted to specific employees of a certain company that give rights to trade shares in the company at a fixed price and within an indicated time period. Unlike a typical option traded in the exchange however, there is no put component included.

The basic goal for this type of concept is actually to boost business within an institution. By giving employees the benefit to buy option shares of the company that they work for, they would be motivated to strive harder and work for good business production. In theory, when stocks go up, and when employees perform at their best to ensure that their investments would pay off, then business would reach its peak of high performance.

Even if the theory mainly tries to align the incentives between the major shareholders of a company and the employees, many critics have pointed out however, that there is an enormous difference between owning an option and actually owning the underlying stock.

In cases wherein stocks go down, the owner of an option would lose the opportunity of a bonus gain, but would not necessarily experience the same loss of investment from an actual stockholder. But still, at the moment, this system has proven to be of very big help to a lot of major companies in the world.

How Do I Exercise My Employee Stock Option?

The thing that people have to know about exercising employee stock options is that in most companies, there are no brokerage firms available and so, you have to do most of the work on your own.

A stock needs to be purchased by a licensed representative. And so, you have to call a broker to inform them that you are interested in exercising your options. They can do all the needed paperwork for you and can even contact your company to speed up the ongoing transaction.

Most people would opt to exercise through a cashless method in which you can use margins to purchase stocks instead of cash. Margins are actually loans that are granted by departments because they guarantee quick repayments and take not that there are not interests assessed.

Once you have made the purchase and have sold your stock, you can pay for your loan as well as the taxes. Just make sure that the portion required for you to sell is small enough for you to be able to retain profit.

Employee stock options are great tools that benefit both the company and its employees. It is a great way to ensure productivity and fluidity within an institution’s financial market and this can provide many opportunities for gains to a lot of people.

If you are one of those that work for huge companies who offer ESOs, take the opportunity to invest. This may not always be as easy, but once you know how to smartly handle such trades, then this can surely give you much promise for a good and promising investment.

What You Should Know About The Stock Trading Robot

For many individuals, trading stocks can be a very difficult and confusing arena to enter. Many first time investors are allured to try out this endeavor, only to find their selves losing a lot of money. To add to this, many traders may realize that finding good help can be quite difficult.

It is a good thing however that technology has outdone itself these days, and many hi-tech computer programs have been created to cater to the very dilemma that a lot of these traders experience.

One of the leading software programs out in the market today is the stock trading robot, otherwise nicknamed as “Marl.” This software has been created to help traders generate more profit by many advanced features that make trading a lot faster and easier.

What Is A Stock Trading Robot?

Marl or the Stock Trading Robot is a unique software program that makes use of advanced mathematical algorithms to help an investor by collecting and analyzing market data. Basically, the program scans through the current trends in the stock market and helps the investor decide on which stocks are the best ones to trade.

Some of Marl’s features may include the ability to analyze 7 stock charts per second as well as process about 1,986,832 mathematical calculations every second. The program also consists of feedback loops that can help itself update and perfect its trading formula and it can be very selective to choose the best for the trader.

The program boasts a lot of advanced features, but the bottom line is that it basically speeds up the process of trading by analyzing the data faster and offering traders good information to aid in decision-making. It also basically does all these things with great accuracy and objectivity.

How Should The Robot Help You?

However advanced Marl can be, what you should know to become successful in your trades is to not totally depend on the program. Remember that although this software can provide very significant assistance to make things easier for you, the decisions ultimately still lie on your hands.

If you are already using or about to use Marl for trading, take advantage of its analyzing and recommendation skills to provide you with good information about trends and patterns in the stock market. But make sure that you also weigh things on your own and consider if the stocks you are about to invest on are really worth the money.

A lot of people consider Marl a scam because despite using it, they still suffer from significant losses in the market. But remember, that most of these people have also been foolish enough to rely so much on a computer program instead of making use of their own decision-making skills.

Technology has really outdone itself through Marl. But like any other software system out in the market today, the stock trading robot still carries certain flaws and has not yet been fully perfected.

If you are interested in making use of this advanced software program, enjoy the liberty to maximize its potentials in analyzing data and in giving you recommendations. But never lack out in your own actual research and strategic attempts to make the best trades possible. If you do this, you might just be able to gain so much profit and lessen so many risks.

What You Need To Know About Day Trading

One of the fast growing trends in the stock trading arena these days is day trading. Today, more and more people are getting into this drift due to the many promises of making fast and easy money on their minds. However, what a lot of people fail to realize is that the buy fast and sell fast strategy of day trading may not always turn out as a very wise tactic to adopt in the stocks game.

Day trading can be a bit of a gamble and traders remain divided on the issue on whether or not this serves much purpose to the stock exchange industry.

Still, what most people could agree on is the fact that day trading is certainly not for everyone, and that it can involve huge risks. And so, before you immerse yourself in day trading, be sure that you get your facts straightened out.

What Is Day Trading?

Day trading is the buying and selling of securities for a certain stock within a single day. The main goal of those who practice this type of trade is basically to be able to profit from the difference between prices for buying and selling.

This type of trading serves two very critical functions in the industry. First, it keeps the markets efficiently running because of arbitrage as stock exchange basically thrives on buy and sell activities. Another function for this is that it usually provides so much liquidity in the stock market.

What Makes Day Trading Risky?

Although day trading may sound quite appealing at first, be warned that up to this day, the profit potential of this type of trading is still under debate among investors and brokers. And if you are new to the trading game, it is not advisable for you to gamble your investment as you may end up losing substantial amounts of money.

Although day trading is not necessarily illegal nor is it unethical, most would agree that it is risky because principles of this trade are based on the “fast and easy money” mentality, and therefore, day traders rely on making profit by rapidly buying and selling stocks in a single day as their stocks continue to rise and fall in value.

Of course, the chances relied upon are not quite dependable and choosing to do business this way seems more of a gamble than a sure way to gain money. Most financial advisors may discourage people from entering this type of trading, with the argument that most of the time, rewards do not justify the risks involved.

Apart from this, many parties capitalize on much of the confusion behind the controversies on day trading and create multiple Internet scams. And since most investors in these type of trades do not actually have a lot of money and may use borrowed money to buy stocks, this can be very dangerous.

The bottom line is, most financial experts would argue that most successful companies have grown not because of day trading, but through more traditional means.

If you were currently not very familiar with the stock market game, then it would be wise for you to stay away from day trading. Take in mind that the best way to earn profit may be through the long process and hard work, and taking shortcuts may certainly involve much more risks than you may want to bargain with.

Facts About Credit Scores

To people who are not familiar with the term credit score, they often assume that this is the score that we get in our credit cards for the number of purchases that we have made every year. But nothing is further from the truth. Credit scores are actually the grade that you get depending on how reliable a person is in paying their debts and credits.

Credit scores are determined by a lot of factors, how much your outstanding debts is, how regular do you pay for it, how much you spend and how much you earn. It will also be determined by your past credits and how were you as a borrower. These are all being gathered and recorded by credit bureaus and credit reference agencies like Equifax, TRansUnion and Experian.

So if you think, you are the only one who knows that you owe a credit card company a big amount, think again because they do keep records and what is more, all the credit transactions that we get are being filed for future reference of every credit and financial institution in the country.

Credit scores is important because it can mean being accepted or rejected for a loan. With a really bad credit score, you may not be able to get a house loan, a car loan, a school loan and even a credit card. In short, with a bad credit history, your days of borrowing money is history. As an added salt to the injury, it is not only credit card companies, lending companies and banks that do get information from the credit scores.

Even private companies and government agencies use this to background check a current employee or a potential employee. You see, a credit score will determine a person’s financial savvy and sense of responsibility. This will also show just how much a person is willing to face up to a problem instead of running away from it.

This is especially true with employees that are being hired or were hired to assume posts that deal with really sensitive financial issues or those who are directly in contact with money. A credit history and a credit score is important in determining if they will be able to handle the finances well.

Mobile phone companies and credit card companies also use credit scores to determine the clients that they should target. People who have good credit scores are often those who have the spending power. Thus, they are good people to offer mobile phone packages and credit card services.

In securing a loan, credit scores are also used in determining the kind of loan that will fit your credit profile. People who have high credit score are given higher amounts in loan, lower interest and longer time frame in which to pay the loan.

In contrast, people who do not have a good credit score may be refused a loan or at the very least be given a small amount in loan, much higher interest and shorter time frame to pay the loan. This is because credit card companies and lender also want to protect their interest. Low credit scores are more riskier and therefore warrant higher interest rates.

Credit scores can be purchased through the internet via Equifax. They will send you your FICO (Fair Isaac Corporation) score for a fee, $12.95.