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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

Stock Option Plan

Definition:

A stock option plan is just the uh…plan…under which the company can issue stock options. That is, it specifies the number of options allowed to be issued, what the options are like - i.e. their vesting provisions (how many years before your work tenure has earned them), the rules they will follow for giving a strike price (i.e. 409a Plan), and the duration or life they will live (i.e. 7 years and then you use 'em or lose 'em).

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