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hi my name is Steve Parma Vancouver business lawyer and today were going to talk about employee stock option plans before we get into that Im just gonna break down what the difference is between options and shares so shares quite simply they represent an ownership stake in a company so say a company has 100 shares that means there are 100 ownership stakes in that company and each of those shares is going to be worth 1% of the company so where as an option an option is a right to purchase one of those shares in the company its not an obligation to purchase them when you receive options youre holding that ability to purchase shares in the company at a later date and generally how options work is that they have a strike price a straight price or also called an exercise price and that price is going to be hopefully below what the market value of the shares is so lets take an example say I am become an employee of Apple and apples shares are worth $200 - no dollars each and my options
