Funding and ownership
Share options
The right to buy shares later at a price fixed today, called the exercise or strike price. You don't own anything until you exercise: pay the strike price, and the options become shares. If the company is worth more by then, the difference is your gain. Most startup equity for staff comes as options, not shares.
A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.
You'll hear it as
You've got options over ten thousand shares at 50p each.
Why it matters to you.
Exercising costs money, and after you leave there's usually a deadline to do it (often 90 days) before the options lapse. Know the deadline before you hand in your notice.
Also called Exercise price, Stock options, Strike price.
Videos.
No video mentions Share options by name yet. These are on the same topic, Careers & hiring.