Skill
Stock Options
Finance and Accounting
Stock options are financial contracts that give an employee or investor the right, but not the obligation, to buy (or sell) a company's stock at a predetermined price within a specific timeframe, commonly used as employee compensation, especially at startups. Employees use stock options as a way to share in a company's growth and potential upside if the stock price rises above the strike price. Understanding vesting schedules, exercise prices, and tax implications is important knowledge for anyone receiving equity compensation.
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