Why do stock options make corporate life easier?

 Less paperwork, fewer headaches.

When a company issues shares, those shareholders instantly gain rights: voting, dividends, disclosures, and more. Multiply that across dozens of employees, and suddenly your governance obligations balloon.

Stock options simplify this. Most optionees don’t exercise until a major event, like an acquisition or IPO. That means fewer shareholders to manage and less time spent on administrative red tape.

It’s just one more reason why startups lean toward options instead of shares.

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