| | What are Stock Option Plans? - InvestorGuide University |
 | | An employee stock option plan gives you the right to buy a certain number of shares of your employer's stock at a stated price (called the grant price, strike price, or exercise price) over a certain period of time (for example, ten years). |
 | | For nonqualified stock options, you usually don't owe any taxes when the options are granted, but pay ordinary income tax on the difference between the exercise price and the current stock price value when you exercise the options. |
 | | If you are participating in a stock ownership plan or stock option program, or if you have shares or options from a former employer, we strongly encourage you to learn more and consider talking to a financial or tax professional before making any major decisions. |
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