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What are employee stock options?

Stock options are typically granted to executives and employees to align their efforts with the overall goals of the organization. When a company issues stock options to employees, employees will hold the options over a service or vesting period, and then exercise them at a future date.

Each stock option will have an exercise price, which is the price the employee must pay when the options are exercised. In return, the employee will be able to sell the options for their current fair-market-value.


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