Skip to content
SWB
OEquity & legalUpdated 2 Nov 2026

Option pool

Reserved shares of company stock set aside for employee stock options and equity compensation.

Definition

The company's authorized but unissued shares of stock that are set aside for issuing to employees, directors, and consultants as stock options.

Share

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

Research more

Open the word in an AI tool with a ready prompt. We do not send your data.

Get one word every week

A 3-minute read: 1 word, 1 founder lesson, 1 tool.

Free. One email a week. Unsubscribe in one click.

Keep reading

Every startup word, in one place

Stay on the Equity & legal shelf, or go back to the full book.