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Q. What do you mean by Grant date in Stock Option?
Grant date - The date at which an employee and an employer reach a mutual understanding of key terms and conditions of a share-based payment award. Employer becomes contingently obligated on the grant date to issue equity instruments or transfer assets to an employee who renders requisite service. Awards made under an arrangement which is subject to shareholder approval aren't deemed to be granted until approval is obtained unless approval is essentially a formality (or perfunctory), for illustration, if management and members of the board of directors control enough votes to approve the arrangement. In the same way, individual awards that are subject to approval by the board of directors, management or both aren't deemed to be granted until all such approvals are obtained. Grant date for an award of equity instruments is the date that an employee begins to benefit from or be adversely affected by, subsequent changes in price of employer's equity shares.
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