A Quick Look at Employee Stock Options

When an individual begins working for a company, or shortly thereafter, they are provided with benefits for being an employee. Employee benefits range a great deal from one corporation to another. If an individual is employed in a clothing department, he/she will generally receive discounts on any of the clothing that he/she buys from the company. A waiter or a waitress may be permitted to obtain free meals from the restaurant where he/she is employed.

Full-time employees are generally granted benefits, including health care, dental care, and a retirement plan. Like employees in all other companies, employees at large corporations and investing firms are often provided with employee stock options as a type of employee benefit. An employee stock option is a type of call option.