virtual stock

Definitions

A form of incentive compensation where employees are granted units that track the value of company stock without actual equity ownership.

A simulated investment instrument used in training or gaming environments to mimic the behavior of real-world stock market trading.

Examples

The company implemented a virtual stock program to incentivize employees without diluting actual equity.

Participants in the virtual stock plan receive cash bonuses tied to the hypothetical performance of the company's shares.

Unlike traditional options, virtual stock provides a way to reward staff based on market growth while maintaining private ownership.

Synonyms

phantom stock shadow stock synthetic equity notional stock deferred compensation unit plan

Antonyms

actual stock physical shares real equity common stock tangible assets direct ownership