A term to describe the future value of unvested RSUs, stock options, and other equity compensation that would be lost if you terminate employment.
Forfeit Value
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Category: F
Forfeiture risk
Until your equity compensation vests, you risk losing it, depending on the terms of the grant. For example, if you leave the company, you may forfeit the right to exercise options that have not yet vested.
Fair market value (FMV)
The price at which your company’s stock is trading at any given point in time. If the stock is publicly traded, its FMV is whatever price it’s fetching on the public exchange. If the stock is pre-IPO, its FMV is may be determined by a 409(a) valuation.
Dive Deeper
Whether you’re just getting started or expanding your knowledge, here are some resources to get you started.
NEW! The Ultimate Guide to Equity Compensation
Understand what you have, what you should consider, and what ultimately matters to you.
Hi, I'm Daniel Zajac, CFP®, EA
I write about equity compensation and employee stock options in a way that is easy to understand.
NEW! The Ultimate Guide to Equity Compensation
Understand what you have, what you should consider, and what ultimately matters to you.
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