What are stock options, and how do they work?

Startup stock options explained: In this lesson of Startup Essentials by Carta, we answer one of the most common questions we hear from founders and employees of startups - what are stock options, and how do they work?
🔗 Learn more about stock options in our course, Equity 101: carta.com/equi...
🔗 Read all about the different types of stock options, and learn key vocabulary terms:
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🔍 What this lesson covers:
• What are stock options?
• What does “exercising” mean?
• What’s a “strike price?”
• How does “vesting” work?
• What happens to your options after you leave a company?
DISCLOSURE: This communication contains general information only and eShares, Inc. dba Carta, Inc. (“Carta”) is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This communication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.
TIMECODES
00:00 Introduction
01:12 What are stock options?
02:30 What is exercising?
03:02 What’s a strike price?
03:35 Types of stock options
05:47 How vesting works
07:43 What happens after you leave the company?
08:30 Conclusion