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Its one thing to vest your shares, but its another thing to actually own them. Its actually a common misconception, especially among employees who are getting stock options for the first time, that once those options vest, the shares just automatically belong to them. This isnt the case. So in this lesson, were going to continue down the road with Iris, and learn about exercising, which is the process by which you come to actually own your shares. Stock options are not stock. Thats a big misconception. When youre granted stock options, it doesnt actually mean you own shares. Instead, what you have been given is the option to purchase those shares at a specified price. And thats what exercising is. Its the mechanism by which you purchase your stock. So if you want to think about it in really simple terms, exercising just means purchasing your options. When Iris exercises her options, she hands money over to the company. And in exchange, the company g
