What is a vesting period??

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What is a vesting period??

In: Economics

5 Answers

Anonymous 0 Comments

I tell you that I’m giving you my entire stamp collection. But only 10% of it vests every year. So really I hold onto my stamp collection, but I’ve promised to give you 10% of it every year.

In the same way, if you work for a company, and they give you 1,000 shares vested 25% every year, then really they’ve just promised to give you 250 shares every year for 4 years.

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