Video narration
Are employee stock options shares you already own-or guaranteed extra pay? Like a coupon locking in a price for later, an option gives you the right-not the obligation-to buy company shares at a set price. That set price is the exercise price-what you pay per share. But the grant isn't shares or guaranteed pay; it's a chance to buy later, useful only if the terms and value work for you. If shares are worth more than your exercise price, the gap can create value; otherwise, buying may not make sense. Vesting is when you earn the right to use options, and you must act before their deadline. Exercising costs money, and you may not be able to sell readily. Exercise and tax rules depend on your grant and situation. No. They're a chance to buy shares at a set price later, worth using only when the terms and value make it worthwhile.