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welcome back and in this lesson well review the stock-based compensation stock-based compensation is a popular form of compensation that companies give their employees apart from their salaries most companies grant equity to employees to increase employee engagement and align their interests with the companys interest the most common stock-based compensations are stock options restricted stocks and restricted stock units the usage of stock-based compensation has docHubly increased since the 90s primarily because of the proliferation of technology startups usually these technology startups have limited cash resources and they have to use stock-based compensation to attract and retain talent as we said one of the popular forms of stock-based compensation is stock options stock options give the right to an employee to purchase the stock at an exercise price which is given in the stock option agreement the stock options are exercisable usually after a vesting period exercisable mean
