Glossary · Employee equity
Stock options
The right to buy company shares later at a fixed “strike” price, usually as a reward for joining early. They often vest over four years so people earn them while they stay.
Related: Option pool · Founder vesting · Cap table · Vesting cliff · Post-termination exercise · 409A valuation
A bit more nuance▾
- Options are not shares until exercised — tax and exercise timing matter.
- ISO vs NSO are US tax categories; other countries have different rules.
Go deeper▾
Discussion questions▾
- Do teammates know how vesting and cliffs work?
- What happens to options if someone leaves at year two?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.