What are Employee Stock Options (ESOs)?

More and more companies are offering stock options as part of the compensation package when recruiting new talent. Employee Stock Options are a type of equity compensation that companies can grant to their employees. Instead of giving the stock directly, the company awards derivative options on the stock. These are regular call options that give […]

Capital Asset Pricing Model (CAPM)

Introduction The Capital Asset Pricing Model (CAPM) shows us the relationship between systematic risk for an investment and the expected return on it. Analysts and financial professionals use the model widely for pricing risky investments and generating expected returns for assets, considering the risk and cost of capital. The CAPM goal is to see if […]