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Course 123 · Money course 14

Understand Stock Options in a Job Offer

Read a fictional grant, map vesting and deadlines, and keep paper value separate from cash pay.

Before you start

Comfort with percentages; know the difference between gross and net pay.

See everything you’ll need

Practice materials and a worked example · Free download. Download the starter pack

What you’ll leave with

An equity-offer file with grant terms, vesting, exercise-cost scenarios, dilution, deadline questions and a cash-based offer comparison.

Start course Start without an account. Sign in to save lesson progress across devices.

Your project

Start with the practice files. Build your project one lesson at a time.

Practice files are free without an account. Sign in to save your project record in My Proof: a description, checklist, and optional work link. Keep the original files in your own app or notebook; saving a project record does not upload them.

  1. Get your materialsDownload practice filesStart with the supplied materials, follow the lessons, and compare your work with the annotated example.
  2. Make your projectView the project checklist Work in your own notebook, document, or software. Use the supplied practice examples when you prefer.
  3. Keep a private recordSave a project record Sign in to save a description and checklist, then return to update them.
Optional course overview

Watch an introduction.

This overview from Carta introduces ideas you’ll practice in the lessons.

Watch directly on YouTube
CartaWhat are stock options, and how do they work?YouTube
Course handbook

Know the route before you begin.

Here’s what you’ll need and what you’ll make. You can return to this guide during any lesson.

Who this is for

For learners ages 14+ and adults exploring practical money and business skills.

Prepare before lesson one
  • Comfort with percentages; know the difference between gross and net pay.
  • Use paper and a calculator, or a free spreadsheet/text editor. The written lessons contain all required records. Optional video and software setup are extra time.
Your final project

Finish with proof you can use.

An equity-offer file with grant terms, vesting, exercise-cost scenarios, dilution, deadline questions and a cash-based offer comparison.

Save a project record in My Proof
See project checklist and review criteria

Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.

What to include

  • An offer term sheet separating salary and contingent equity.
  • A vesting calendar and departure scenario. An exercise-cost worksheet with three hypothetical price scenarios.
  • A simple dilution calculation and denominator questions.
  • A departure deadline map and tax-adviser question list.
  • A complete equity-offer comparison with a conditional recommendation.

Review and revise

Use these criteria to check your work and choose what to improve.

  • Calculations reconcile to the supplied records, with units and dates labeled.
  • Assumptions and missing information are visible, including the changed scenario.
  • The recommendation follows the evidence and explains an important limitation.
  • The six lesson outputs form a usable handoff that another learner can check.
Three ideas to help you along the way
Three useful ideas

The rules behind the steps.

01

Separate cash

An option count is not spendable salary.

02

Read the actual grant

Vesting and departure terms vary.

03

Model uncertainty

Show purchase cost, restrictions and missing facts.

What do these words mean?
Key words

Key terms worth knowing.

Option
Right to buy shares under specified terms.
Vesting
Earning rights according to a grant schedule.
Exercise price
Price paid per share when exercising.
Dilution
A reduction in percentage ownership as the denominator increases.
Liquidity
Ability to turn an asset into usable cash.
Your route

6 lessons.
One useful project.

Work in order the first time. Each lesson makes something the next lesson can use.

  1. 1
    Up next

    Separate cash from an option grant

    An offer term sheet separating salary and contingent equity.

  2. 2
    30 min

    Map the vesting calendar

    A vesting calendar and departure scenario.

  3. 3
    30 min

    Calculate the cash required to exercise

    An exercise-cost worksheet with three hypothetical price scenarios.

  4. 4
    30 min

    Understand the ownership denominator

    A simple dilution calculation and denominator questions.

  5. 5
    30 min

    Map deadlines and professional questions

    A departure deadline map and tax-adviser question list.

  6. 6
    30 min

    Compare an offer without spending paper value

    A complete equity-offer comparison with a conditional recommendation.

Use the tools

Tools to help you practice.

See all tools
ZIP · practice files

Understand Stock Options in a Job Offer practice files

Start with the supplied materials, follow the lessons, and compare your work with the annotated example.

Text worksheet

Your course project worksheet

A downloadable text worksheet with each lesson’s working output, space for your answers, and the shared final-project checklist. Save your own copy.

Source transparency

Sources and further study.

Explore the references behind the lessons and take your learning further. Source notes explain access and reuse.

Employee Stock Option Plans
Source & access notes · checked 2026-09-12

Inspected distinction between employee options and employee stock ownership retirement plans.

Access: Public page inspected without a sign-in; linked services may have separate requirements.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

Topic 427: Stock options
Source & access notes · checked 2026-09-12

Inspected statutory/nonstatutory distinctions and tax events; no individualized tax computation is taught.

Access: Public page inspected without a sign-in; linked services may have separate requirements.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

Employee Benefit Plans: Rule 701
Source & access notes · checked 2026-09-12

Inspected compensatory securities exemption and resale restrictions. Fictional terms control all exercises.

Access: Public page inspected without a sign-in; linked services may have separate requirements.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

What are stock options, and how do they work? — Carta
Source & access notes · checked 2026-09-12

Direct watch-page title, channel and description inspected; employee option topics match the written course. oEmbed independently confirms the title and channel.

Access: Public video metadata inspected without sign-in; playback and captions were not tested.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

Ready when you are

Start with the first useful move.

You’ll always know what to do, what to make, and where to go next.

Start lesson one