SaaS & Startupintermediate
Strike Price
Definition
The fixed price at which an employee can buy shares through their stock options.
Why it matters
A lower strike price means more potential profit for your team if the company value rises, so it matters when granting options.
Example
With a strike price of 50p, an employee can buy shares for 50p each even if they are later worth £5.
Related terms
Learn the language of business - and build the systems behind it.
Rich Girl Systems turns 1168+ founder concepts into a step-by-step programme with daily challenges, XP and your own assistant.
Take the free founder quiz