Employee stock options

Employee stock options are a benefit given to employees that allow them to buy shares of the company's stock at a fixed price within a specific timeframe. This price is usually set when the option is granted. If the company's stock price rises above this fixed price, employees can buy the stock at the lower price, potentially making a profit by selling it later. Stock options are often used to motivate employees, as they align their financial interests with the company's success. However, they also come with risks, as stock prices can fluctuate.