Definition
The company's authorized but unissued shares of stock that are set aside for issuing to employees, directors, and consultants as stock options.
In the room
How the word shows up in a real conversation.
If you're working in the financial market, chances are good that you've heard of option pooling. This is when a group of investors pool their funds together to invest in a single opportunity. They can then share the profits and losses among themselves.
Common mistake
Using Option pool as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Option grant
Award of stock options to employees as part of compensation or incentive programs.
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Limited liability partnership (LLP)
Partnership structure that provides liability protection for partners.
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Non-disclosure agreement (NDA)
Legal contract that protects confidential information from being shared.
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Owners equity
Residual interest in the assets of a business after deducting liabilities.
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