What is a stock option grant date?

Grant Date – The date when the stock option (i.e., the right to buy the stock at a pre-determined price) is awarded to you. Vesting Schedule – The requirements to be eligible to exercise your stock options, usually met by waiting for a specified period.

What is a vesting date?

Vesting Commencement Date: The vesting commencement date is the day on which your ISOs start to vest. Upon vesting, you have the right to exercise your option and purchase the underlying shares. Vesting Schedule: There are two vesting schedules for ISO plans: cliff vesting and graded vesting.

How does a vesting schedule work?

The vesting schedule also includes an expiration date. That's when the employee no longer has the right to purchase company stock under the terms of the agreement. The price at which the employee can purchase shares is known as the exercise price. In most cases, it's simply the stock's market value on the grant date.