Understanding Employee Stock Options: Definition, Terminologies and Advantages 

1. Exercise price or strike prices is the price per share which you and your employer agreed upon at the time of your joining/ options grant. This is the price at which you would be able to exercise all your vested options when ever you wish to in future. eg. You get the exercise price of $1 per share and you get 1000 total stock options vested in your account at the end of 4 year vesting. So if you wish to exercise (or purchase - to simplify it) all your stock options, you just need to pay $1000. The best part is, if the company is doing well and has the potential to go public soon, you can anticipate the kind of monetary gain you can get out of this. 2. The other company most probably a bigger player comparatively, will either pay you a price for your ESOPs or they can also convert your ESOPs into their company's ESOPs. Either way, you should gain profit out if it. But not as much as you can expect from public listing. That kind of profit is going to be encashed by the acquirer company. 3. Same as 2. 4. So at the end of 3 years, you will have 75% of ESOPs vested into your accout. After termination, companies give exercise time window ranging from 3 months to 10 years, depending upon how senstie they are for emplyee welfare. So after leaving, its upto you if you wish to exercise(purchase) your vest ESOPs or not. You will have to make a decision at that time. And be aware of the taxation rules at the time of exercise.

Usually the ESOPs granted are very less in quantity that it does not have an impact on the control of a company. For an example, the total ESOPs given to all the employees in a company rarely cross single digits, so in that case, there is no question of control over the company. Answering your second question, the grant date only gives you the confirmation of owning the shares after a certain period, so while the vesting period is going on, you have no shares and practically no authority or power that might come with those shares. This is after the exercise. Hope that helps. - Prithvi

@@backstagewithmillionaires Thannks a lot.

Certainly Archit. Due diligence is in our list and you will see the video on this very soon. - Prithvi

That will help to grow. reach more people and also get more subscribe

Hi Kousik, thank you for the suggestions! Because we only have a small team size, daily news videos might not be feasible with our current quality standards. But hopefully someday in the future we can onboard some more teammates to increase our video output. As for interviews, we actually started our channel with those and posted two interviews a week for more than a year, but we weren’t seeing enough growth with those unfortunately. However we are trying to figure out a way to continue conducting interviews while also ensuring that we maintain our regular output. And yes, regarding _building a startup_ content, you’ll be happy to know that we have recently begun a series/playlist titled *Startup 101* where we explain concepts and techniques related to building and maintaining startups. You can go check that playlist out here: ru-vid.com/group/PLW_KdmQM-qwD3dZWoXVAkfJeU-h735Sif We only have 5 videos right now, but we plan to add many many more in the coming weeks and months. -Caleb

That's correct Jyoti. ESOPs are mainly intended for employees who plan to stick around at a company for many years. -Caleb