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Definition of Stock Options

Stock options refer to a contractual right of a recipient to purchase stock in a startup a predetermined exercise price. Stock options are a commonly used form of compensatory equity to incentivize employees and other service providers in early stage startups, given that startups can rarely afford to pay market salaries to their service providers.

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    Startups and Stock Options: ISOs vs. NSOs

    Explore the world of stock options with our informative guide. Compare Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NSOs), and learn why startups choose one over the other.