## When is it created ?
- This is generally started as pool of shares at the beginning of the company , legalised by the board of directors and reserved for the employees. 
- It is also considered as a stock issue event. 


## What is it ?
- Options to purchase a certain number of shares at a later time at a pre-defined price . 
- The price is determined based on the current valuation of the company when the stock options are given to the emplpoyee and is known as strike price.


## Why is it given ?
- This is one method of [[Compensation]] for employees. 
-  Buysing stocks = assests , hence the employee would have to pay taxes to something that isn't necessarily bringing him revenue.
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Resource : https://www.youtube.com/watch?v=jjcTcYK3MQI