Stock Option Plan

A Stock Option Plan is a benefit that companies offer to employees, giving them the right to buy company shares at a fixed price, known as the "exercise price," after a certain period or once specific conditions are met. This plan aligns employees' interests with the company's success, as they can profit if the company’s stock price increases. Typically, options have a set timeframe for exercising and may vest gradually over time. It’s a way to motivate employees and reward their contribution to the company's growth, without requiring immediate investment.