Reprice

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DEFINITION of 'Reprice'

A situation involving the exchange of stock options that are no longer in the money for options that are currently at the money. This allows the investor to exchange worthless options for options that have value, and is common for executives, pending approval from the board of directors.

BREAKING DOWN 'Reprice'

This scenario is most likely to arise for corporate executives and high-level employees.

Due to the changes in financial reporting laws, repricing will increase the option expenses a firm is required to deduct from net income.

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