Stock Trading and Other Things

What happens to employee stock options when a company is bought out?

My current company just announced that it is being purchased. What happens to my employee stock options? Do they convert to the new stock or do they immediately vest at the current price?

Public Comments

1. The answer is to be found in the stock option plan availabvle from your HR department.

Typically options vest immediately upon a change of control and are converted to cash.

2. Typically, they convert to the takeover company's stock. That is what happened with mine.