Reprice

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Dictionary Says

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.
Investopedia Says

Investopedia explains '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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'Reprice'

  • Putting Management Under The Microscope

    http://www.investopedia.com/articles/stocks/05/050205.asp
    ... At the same time, keep an eye on companies that reprice their options, originally
    issuing options at one price and then, because the companies' share price ...
  • Investing Basics: Flight To Quality

    http://www.investopedia.com/articles/basics/09/flight-to-quality.asp
    ... For An Unsteady Market.) Once major issues in the market come to light, the bubble
    begins to burst and panic occurs in the market as participants reprice risk. ...
  • Payment Option ARMs: A Ticking Time Bomb?

    http://www.investopedia.com/articles/mortgages-real-estate/08/payment-option-ARM.asp
    ... began to show default rates greater than their sophisticated structures were designed
    to bear, markets and financial institutions began to reprice risks of all ...
  • Watch A Bank's Liabilities

    http://stocks.investopedia.com/stock-analysis/2010/Watch-A-Banks-Liabilities-RBCAA-IBOC-CFR-UMBF0503.aspx
    ... Some banks have the opposite problem. Cullen Frost Bankers (NYSE:CFR), has only
    10% of its liabilities set to reprice within the next 12 months. ...
  • Hudson City Bancorp - The Bear Case

    http://stocks.investopedia.com/stock-analysis/2011/Hudson-City-Bancorp---The-Bear-Case-HCBK0415.aspx
    ... funding. While these new borrowings are a cheaper source of funding, it
    will reprice fairly quickly when interest rates rise. Other ...
  • Should Employees Be Compensated With Stock Options?

    http://www.investopedia.com/articles/analyst/091202.asp
    ... shareholder, who bought and held their investment. Who will reprice the
    shareholders' shares? 3. Increases in dilution risk as more ...

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