Stock Options. A Basic Introduction

October 24, 2014 Magda

stock options

If you are thinking about working at a startup, specially an early stage startup, you’ve probably heard about the risks and possibilities. You are right to weigh the negative against the positive but keep in mind, there are many tangible and intangible perks to working at a startup that you should consider. Stock options are a very popular one!

Stock options are the right to buy a share of the company stock at a certain time for a certain price (the so called “strike price”). So basically, if the startup you work for is sold (like Whatsapp was sold to Facebook) then you, as an employee, will have the right either keep or exercise your options.

I can sense this talk is getting pretty confusing and hard for me to explain… so we put together an infographic that will help better understand and shed light into the stock option world… Check it out!

Click here to enlarge / Open as pdf

stock options