When gaining a position with a new firm, people will often find that they have been given Stock Options, which instantly confuses people. There is though a simple method to understand stock options. The simple method to understand stock options is to basically understand that stock options are a non cash form of payment for your work. It is an added benefit that ties an employee into the success of the business, if the business is successful then the stock options are worth more, and there is a direct financial benefit to the employee.
