Does a stock split affect incentive stock options?
October 17, 2003
Subject: Stock Splits
Date: Wed, 17 Sep 2003
Does a stock split or a reverse stock split effect incentive stock options at all? For example, if you had an option for 1500 shares granted in 1997 and then the stock split in 2001, would this have an effect on the option?
Date: Fri, 03 Oct 2003
The option would be adjusted for the split. Using your example, if the original option was granted for 1500 shares at $1 per share and the stock split 2:1, the option would be adjusted to 3000 shares at 50¢ per share.