Personal Finance Myth #45

Receiving ESOPs mean you immediately own the shares | Vrid
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Receiving ESOPs means immediate ownership of shares

Getting Employee Stock Ownership Plans (ESOPs) doesn’t mean you become an immediate owner of shares.  

ESOPs have a waiting period called a vesting period. During this time, you, as an employee, gradually earn the right to own the shares. The vesting period can last for many years. 

To be able to exercise your options and actually own the shares, you must meet specific requirements like staying employed. 

You need to know the vesting schedule and the terms of your ESOPs to understand when you can truly own the shares. We explained the whole process here.

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