An employee stock option is a type of stock option program that gives an employee the right to buy shares in the limited company in the future at a set price. It is used to attract and retain key people, especially in startups.
Some employee options can be tax-favoured (qualified employee stock options). When the options are exercised, shares are issued, which affects the share capital and the cap table and must be recorded in the share ledger.

A qualified employee stock option (KPO) is an option taxed favourably if statutory requirements are met.
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A stock option program gives, for example, employees the right to buy shares in the future.
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An equity option is an option whose underlying asset is a share, either as a call or a put option.
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A warrant gives the right to subscribe for new shares in a company at a set price.
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