Stock Option

Noun · Startup & VC

Definitions

  1. A right to purchase company shares at a predetermined price, usually granted as part of compensation and subject to vesting. In startups, stock options are a major piece of how employees participate in upside.

    In plain English: A right to buy company shares later at a set price.

    Example: "The candidate cared more about the stock option grant than the signing bonus."

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