Share Option

May 24, 2019 by James Woolfenden

A right to purchase shares in a company in the future at a given price, the Exercise Price. Share Options are often used to incentivise key employees (see EMI Option). Share Options may be subject to a Vesting, meaning that the underlying shares can only be acquired in stages over time (a Vesting schedule). Sometimes Share Options may only be exercised just before an Exit Event.