Renée Padgham's avatar image.

My name is Renée Padgham, Designer.

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  • What are "Stock Options"?

    I’ve seen some job listings online, and some of them say “Plus stock options”. What does this mean? All the articles I’ve found online are extensive and I don’t really understand them.

    I know that “Stock” and “Equity” are like… interchangeable, but how does “stock” work, and how is it different than equity? Is “Stock” the same as “Stock options”?

    Renée Padgham's avatar image.

    Having stock in a company means that you technically own that share of the company. It's often used in early stage companies because it's a great incentive for employees to make the company successful, since you're also better off.

    A stock option isn't actually a stock, it's an option to purchase stock at a certain price. Companies generally set aside pools of stock they offer to employees at fixed or lower rates. You can then exercise your option, which is to actually take ownership of the stock at whatever terms/price the company presents.