It is commonplace for start-ups and emerging companies to offer stock option to employees, consultants and service providers in conjunction with, or often in lieu of, cash compensation. For the employee, consultant or service provider, the offer of stock options can be an opportunity to share in the potential success of the company, but a potential recipient of stock options should be aware of certain important considerations before simply accepting stock options in a start-up or emerging companies. This discussion summarizes key aspects of stock options and issues you should consider when negotiating terms relating to the possible grant of stock options in a privately-held company.
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Issues to Consider When Offered Stock Options