stock option

Employee purchase right

A stock option is the right to buy or sell a company's shares at a predetermined price within a specific time period.

As employee compensation, stock options let workers purchase company stock at a favorable price, aligning their interests with shareholders: The startup offered stock options instead of a higher salary.

Options are also traded as financial instruments for speculation or hedging.

equity

vesting

Gaining full ownership

ESOP · ISO · dilution · incentive · employee benefit · golden handcuffs · retention · cliff · vesting schedule · fair market value

trading

call

Contact by phone

derivative · contract · strike price · exercise · volatility · hedge · leverage · intrinsic value · theta · delta

Categories
Opposites
compensation certainty

stock optionpension

Retiree's ongoing benefit

hourly wage · base salary · base pay · signing bonus · severance pay

ownership structure

stock optioncommon stock

Basic corporate ownership units

shares · equity stake · restricted stock · bond · debenture

risk profile

stock optiontreasury bond

US debt certificate

government bond · certificate of deposit · savings account · money market fund · cash

Family

stock, option, stocks, options, stocked, stocking, stocker, stockist, restock

Familiarity
Top 100,000
Profile
Used worldwide · Timeless · Abstract · Rated G