Acquiring an asset, such as stock options or employer-matched contributions to your 401(k), is a gradual process that occurs over time. Vesting marks the moment when an individual obtains the rights and interests associated with legal ownership of a property. This grants them the immediate assurance of utilizing or benefiting from the asset in the present or future. Employers frequently employ vesting as a means to incentivize employees to remain with the company for an extended period and excel in their performance, thus enabling them to earn their rewards.
