1. What is Torch ESOP?

Torch ESOP (Employee Stock Ownership Plan) is a program that provides company shares to employees as part of their compensation package. The value of these shares depends on the number of shares and their current price.

2. How Does the Calculator Work?

The calculator uses the simple equation:

Where:

• \( Shares \) — Number of shares owned
• \( Price \) — Current price per share in USD

Explanation: The total value of your ESOP is simply the product of the number of shares you hold and the current price per share.

3. Importance of ESOP Valuation

Details: Regular valuation of your ESOP helps in financial planning, understanding your compensation package, and making informed decisions about exercising options.

4. Using the Calculator

Tips: Enter the number of shares you own and the current price per share in USD. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my number of shares?
A: Your number of shares should be available in your ESOP agreement or through your company's HR department.

Q2: How often does the share price change?
A: For private companies, the price is typically set during funding rounds. For public companies, it changes continuously during trading hours.

Q3: Are there any restrictions on selling ESOP shares?
A: Yes, most ESOPs have vesting periods and other restrictions. Check your specific plan details.

Q4: What's the difference between ESOP and RSU?
A: ESOP typically gives you the option to buy shares at a set price, while RSUs (Restricted Stock Units) are shares granted outright after vesting.

Q5: Are ESOP gains taxable?
A: Yes, there are usually tax implications when you exercise options or sell shares. Consult a tax professional for your specific situation.