Stock Option
A contractual right granted to an employee, director, or advisor to purchase a specified number of company shares at a predetermined price (the exercise or strike price) within a set time period. Stock options are a primary form of equity compensation used to align the interests of team members with shareholders and incentivize long-term value creation. Options typically vest over time (commonly four years) and must be exercised within a specified period after leaving the company.
Related Terms
The process by which an employee or director gradually earns full ownership rights to equity compensation (such as stock...
An independent appraisal of a private company's common stock fair market value, required under Section 409A of the Inter...
Short for 'capitalization table,' a detailed spreadsheet or document that records the equity ownership structure of a co...
The basic class of equity ownership in a corporation that typically carries voting rights and a residual claim on the co...
The financial remuneration and benefits provided to board members for their service, which may include cash retainers, p...
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