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Annotated diagram of Schedule DTax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.

Basics: Grants

Will I be granted stock options and/or restricted stock automatically every year?

Companies tend to grant options at hire and only periodically thereafter for any of the following reasons:

  • to reward performance
  • to motivate employees with vested stock options
  • to match other job offers
  • to retain employees through mergers or IPOs
  • to respond to volatility in the stock price

For survey data on the eligibility and frequency of stock grants, and common events that trigger stock grants, see a related FAQ.

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