One of my senior family member is offered to buy shares of company in which he is working, under ESOP scheme. He is working in Camlin Ltd. (company mfg Pens, pencils etc.) and will be retiring after 1.5 yrs.
Max stock offerable is 4650sh @ Rs.16 per share having face value of Re.1. He is planning to buy shares worth Rs.15000.
Since i have not dealt with ESOP earlier i would be happy if experts give me some idea regarding ESOP.
19 August 2008
THe advantage of ESOP is you will gain on share price movements upwards after you acquire. The disadvantage is downward price movements after acquisition. The opportunity cost of investment should also be considered.
CAclubindia
