SaaS & Startupintermediate
Stock Option
Definition
The right to buy company shares at a fixed price in the future, often given to employees as part of their pay.
Why it matters
Stock options let you reward and motivate your team without spending cash, sharing in the upside if the company grows.
Example
An early hire gets stock options to buy shares at 50p, which could be worth far more later.
Related terms
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