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Hey, its Todd Ault and these are Wall St. Words. Todays word is Stock Appreciation Rights. Whats the difference between stock appreciation rights and having a stock option? Im going to cut to the simplest form of this. Youre an employee at a public company, you get stock granted to you at $10.00 a share, the stock goes to $20.00 a share. Under the normal way of doing stock options, youd have to pay $10.00 a share to exercise to get the $10.00 a share you made. With stock appreciation rights you get the difference paid to you, but you dont have to pay for the stock. You get the appreciation of the price without having to pay for the shares. So, therefore, as an employee, you can participate in the upside of the performance of the company you work at. These are stock appreciation rights.