Nominal cost option | Practical Law

Nominal cost option | Practical Law

Nominal cost option

Nominal cost option

Practical Law UK Glossary 5-504-2196 (Approx. 2 pages)

Glossary

Nominal cost option

A share option where the option holder must pay an exercise price equal to the nominal value of each share in order to exercise the option.
Under UK company law, the nominal value of newly issued shares must be paid up, so if a UK company grants share options over new issue shares, the exercise price must be at least the nominal value.