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Definition

What is stock options?

A stock option is the right to buy a set number of company shares at a fixed price (the exercise or strike price) after they vest. Options are how most startups share ownership with employees.

In the US, incentive stock options (ISOs) and non-qualified options (NSOs) are taxed differently; other countries have their own schemes. Get tax advice before exercising.

General information, not legal, tax or investment advice.

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