Article
July 29, 2026
What are employee stock options?
While stocks are actual equity shares, i.e., ownership stakes, stock options give you the choice to purchase company stock in the future at a predetermined price. Note that while publicly traded stocks also have options contracts, those financial instruments differ from employee stock options. Options contracts involve speculating on the future price of a stock, whereas employee stock options are a type of equity compensation, generally meant to reward employees based on their tenure and the company's performance.









































