How do incentive stock options work?
April 20, 2011 7:20 PM Subscribe
Incentive stock options: explain them to me as if were a child!
posted by kmtiszen to work & money (15 answers total) 3 users marked this as a favorite
Starting a new job, received some incentive stock options. Now how on earth does this work? Here's the phrasing:
"...2,500 shares of the common stock of [company] at the fair market value determined at the meeting. This option shall be exercisable with
respect to a four year installment vesting period with a one year cliff (25% after one year, 2.083% per month thereafter)."
I have no mind for this kind of stuff, so please explain this to me without using any confusing financial jargon. What are my next steps in this game?