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Stock options aren't actual shares of stock?they're the right to buy a set number of company shares at a fixed price, usually called a grant price, strike price, or exercise price. Because your purchase price stays the same, if the value of the stock goes up, you could make money on the difference.
Key Points: A grant is a future promise to give you stock options. The grant price is the price at which you can purchase shares, and the grant date is the day the stock options are given to you. Vesting is the process of fulfilling the grant (promise).
Stock awards provide corporations a way to pay their executives based on company performance so their compensation aligns with the expectations of the shareholders. Companies may also grant stock awards to lower-level employees to incentivize them to take ownership of the company's performance and retain their loyalty.
An option grant is a right to acquire a set number of shares of stock of a company at a set price.
The grant date for your ISO is the date you are awarded the options. The value of the shares on the grant date helps determine your exercise price. The vesting date is the first date your options become available.