n NISM Certifications
X NISM Series X
Medium

The vesting date in Employee Stock Option (ESOP) refers to the date when an employee becomes eligible to exercise their stock options and acquire shares.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The date on which the employee rejects the offer completely

  2. B

    The date on which option was announced by the company

  3. C

    The date on which employee actually opts for ESOP

  4. The date on which employee becomes eligible to opt for Employee Stock Option

    Correct answer

Why this is the answer

The vesting date marks when an employee gains the right to exercise stock options and purchase shares.

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