What is a vesting period??
In: Economics
It’s a time where you earn the right to portion of something granted… you most commonly see it related to stock grants or stock option grants with a company, or with 401k matches, etc.
So say you join a compnay and they grant you 900 shares of company stock with a 3 year vesting period. That typically means that after one year, you’d be able to claim 1/3, or 300 shares. After the second year of employment, 300 more. And if you stay for 3 years then you’d be able to get the final 300 shares.
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