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Vest / Vesting


Stock certificate with US one hundred dollar note, close-up, full frame (digital composite)
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Definition: To give someone control over their stock or stock options.

When employees are given stock options or restricted stock, they often do not gain control over the stock or options for a period of time. This period is known as the vesting period and is usually 3 to 5 years. During the vesting period the employee cannot sell or transfer the stock or options.

Typically, a quarter of the options in a stock option grant, for example, will vest each year for a four-year period.

**See the full Glossary of Business Management Terms and Abbreviations

Also Known As: to vest, vested
100 shares of restricted stock will vest on your employment date in each of the next four years.

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