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welcome to stock option counsel Im Mary Russell Im an attorney and I counsel individuals on their stock options and other equity compensation I often hear the question about stock options does the exercise price stay the same over time and the answer is yes the exercise price is set by the Board of Directors on the date that the stock option is granted its most commonly set at the fair market value of a common stock on the date of the grant in practice for a founding stage of a company before theres been any value created or any investments taken this is most commonly set at fractions of one penny so it might be like point zero zero zero one cents a share or something like that because the market value is nothing because nothing has been created again in practice as a company has some progress either in raising funds like on a convertible note or in creating something of value its still set very low but not as low as a founder stage so something like two cents a share or somethin
