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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Vested

Definition:

Vested refers to the act of having earned granted stock options in return for having remained at your job for a longish period of time, like 4 years. At least that's the "standard" vest provision in most Silicon Valley start-ups.

Example

At Shmoop, we pay in 3 forms: Cash, peanuts, and options. Our fearless content leader, Deb, was given 100 options to start at Shmoop (and an ENORMOUS bag of peanuts). Her options carried a 5 year vest provision so that at the end of the first year, she was "vested" into 20 options, meaning that on her 1-year anniversary, she owned those options, no matter what. Then she had 4 more years or 48 more months on that grant of 80 remaining options and she vested into them 48/80 per month. She's only just turned 30 but this is what Shmoop has done to her: here she is.

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