Track an employee stock option grant in the Portfolio Manager

Because an employee stock option grant (A form of compensation in which an employer gives an employee the right to buy a specific amount of the company's stock at a specific price (the strike price). ) has special requirements for tracking original value, vesting periods, and other details, Money uses a special kind of account (an employee stock option account) to track employee stock option (ESO) grants.

Please click one:

Enter an employee stock option grant

Record the exercise of employee stock options

To help ensure that your ESO grants are tracked accurately, create a new ESO account for each ESO grant you receive. Have your paperwork handy so that you can enter information about the vesting period, expiration date, the number of shares, and the strike price.

Go to the Portfolio Manager.
In the left pane, click Work with accounts, and then click Add an account.
Click Employee stock option, and then click Next. Click Next again.
Click Track transactions and other details, and then click Next.
Follow the instructions on the screen.

Note

To edit details about the grant, including the strike price, right-click the investment name in the Portfolio Manager, and then click Investment Details.

When you exercise (To buy or sell stock at a specific price, using the right granted by an option. ) employee stock options (ESOs), you purchase stock at the ESO grant's strike price. You can then either sell the shares at the market price and collect any profits (less income taxes), or you can continue to hold the shares.

Go to the Portfolio Manager.
Click the plus (+) sign next to the name of the employee stock option account where you hold the grant.
Click the name of the employee stock option grant, and then click New.
In the Activity box, click Exercise & Sell (even if you are exercising and holding).
Complete the information in the Edit Transaction dialog box.
- If you are exercising and selling:
  1. In the Transfer to box, choose an account where the proceeds from the sale will be deposited.
  2. In the Price box, enter the current market price for the stock (not the strike price).
- If you are exercising and holding:
  1. Leave the Transfer to box blank. If the Transfer to box already contains an account name, delete it. (Because you are holding the stock, there are no proceeds to transfer to another account.)
  2. In the Price box, enter the strike price for the stock, not the market price.

Note

If you are exercising and holding, you now own shares instead of options. You should enter those shares as a stock purchase in the Portfolio Manager. To record the stock purchase, click the account where you hold the shares (not your stock option account), and then enter the stock purchase as you would enter any other stock purchase. In the Price box, enter the strike price, not the market price.