About Stock OptionsLearn More
What is Stock Options?
Granting stock options is not the transfer of company shares, but actually the right to buy a certain amount of company shares at a fixed price. This price is usually called Grant Price, Strike Price or Exercise Price. Because the stock purchase price is fixed, if the company's stock value grows, the employee receiving the option can profit from the difference between these two prices.
The most common method of assigning shares to employees is stock options.
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