Market Sale Methods

Exercise and Hold, also known as a "cash exercise," refers to a stock option strategy where an employee exercises their stock options and holds onto the acquired shares for an extended period of time, rather than selling them immediately. In this scenario, the employee pays the exercise price to acquire the shares, but instead of selling them right away, they retain ownership of the shares in their investment portfolio. This strategy allows the employee to benefit from potential future appreciation in the company's stock value. The employee becomes a shareholder with a vested interest in the company's performance. 

Same Day Sale refers to a financial transaction that occurs when an employee exercises stock options and immediately sells the acquired shares on the same day. In the context of employee compensation, stock options are often granted as part of an employee's benefits package. When an employee exercises these options, they purchase company shares at a predetermined exercise price. With a same day sale, the employee sells the shares they've just acquired on the same day at the market price. This allows them to realize any potential gains from the difference between the exercise price and the market price, while also quickly liquidating their position. 

Sell to Cover is a strategy used by employees to cover the cost of exercising stock options by selling a portion of the acquired shares. When an employee exercises stock options, they typically need to pay the exercise price to acquire the shares. In a sell to cover transaction, the employee sells enough of the acquired shares to cover the cost of exercising the options. This means they retain a portion of the shares while selling others to cover the financial obligation. The remaining shares can be held for potential future gains.