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Investments glossary

Option Pool


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Quotes of the day:

I believe that the great Creator has put ores and oil on this earth to give us a breathing spell. As we exhaust them, we must be prepared to fall back on our farms, which is God\'s true storehouse and can never be exhausted. We can learn to synthesize material for every human need from things that grow.

— George Washington Carver

An option pool consists of shares of stock reserved for employees of a private company. The option pool is a way of attracting talented employees to a startup company – if the employees help the company do well enough to go public, they will be compensated with stock. Employees who get into the startup early will usually receive a greater percentage of the option pool than employees who arrive later.


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