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Stock Options

Stock Options defined:┬áStock options is the benefit a company gives its employees to purchase the company’s stock at a discounted or fixed price at some point in the future. Stock options are used as incentives to retain talented employees by offering them performance based payouts especially of the price the option can be exercised at is considerably lower than the current price of the stock.

Above is a definition for “Stock Options” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

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