Employee stock options strike price
Employee stock options can be very different from more traditional options contracts. Some basic differences are a non-standardized strike price (often the current price of the company's stock at the time of issue), vesting (number of shares available to be exercised increases the longer the employee works for the company), and a significantly longer date until expiration. An employee stock option is the right given to you by your employer to buy ("exercise") a certain number of shares of company stock at a pre-set price (the "grant," "strike" or "exercise" price A Stock Option gives you the ability to purchase shares of a company at a pre-defined price (the “strike price”). If your option plan lets you buy shares at $0.10 per share, and the company sells for $1.00 per share, you make a profit of $0.90 per share. Nice! Mistake #1: Not Knowing Your Ownership Percentage. An employee might know that