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ARTICLE · 14 JUNE 2022

What Is A Stock Option?

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If you're reading this post, chances are that you are wondering about options. For example, you may be asking yourself: "What is an option?

CanadaCorporate/Commercial Law
Constantinos Ragas
Constantinos Ragas
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If you're reading this post, chances are that you are wondering about options. For example, you may be asking yourself: "What is an option? What is an option pool? How do you grant options? How do they vest? What does it mean to exercise an option?" All good questions. Let's answer the first in this post and come back to the others later on.

An Option is a Security

In its most basic sense, an option is a security, like a share (but not identical). Options are securities which convert into, or can be exchanged for, other securities like shares. Another way to think of it is that an option grants the holder the right to acquire a share, subject to certain terms and conditions.

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