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Igor

Shareholder Value Transfer - SVT Definition

By Igor, in Trading Dictionary

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Igor    10

Igor
Posted

The basis of SVT is that company executives usually exercse stock options at a price favourable to them irrespective of the market price. This tends to reduce the company's profits because the stock options would have yielded more money if they had been sold to third parties. SVT therefore measures this equity that would have accrued to the company if third party sales were done as opposed to transfer to company executives.

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