What are employee stock options and how do they work?
An example of an AI chatbot conversation about employee stock options and their workings.
What are employee stock options and how do they work?
Employee stock options are contracts that give employees the right to buy company stock at a predetermined price.
What are the benefits of having stock options?
The benefits include potential financial gain, alignment of employee interests with company performance, and tax advantages.
Are there any risks associated with stock options?
Yes, risks include stock price volatility, potential loss if the stock price falls below the option price, and tax implications.
How do I know when to exercise my options?
You should consider exercising options when the stock price is significantly higher than the exercise price, and after evaluating your financial situation.
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