There are different ways to acquire rights or stocks. In stock option incentive, the incentive object is to obtain this right for free or basically without cash; In equity incentive, the incentive object must take out some cash to obtain shares or stocks.
1. option, also known as option, is a derivative financial instrument based on futures. In essence, the option is to price the rights and obligations in the financial field separately, so that the transferee of the right can exercise his rights on whether to trade or not within a specified time, and the obligor must perform it. In the transaction of options, the party who buys options is called the buyer, and the party who sells options is called the seller. The buyer is the transferee of the right, and the seller is the obligor who must fulfill the buyer's right.
Second, equity incentive: also known as shareholders' rights, there are broad and narrow points. Broadly speaking, equity refers to all kinds of rights that shareholders can claim from the company; In a narrow sense, equity only refers to the participation of shareholders in the company based on their qualifications or economic interests.
Third, the right to operate. As the target of equity pledge, equity is only in a narrow sense. In this sense, the so-called equity refers to the transferable right of shareholders to participate in affairs and enjoy property interests in the company. This right is obtained by way of capital contribution, which is stipulated by laws or the company's articles of association.
4. An option is the right to exercise some behavior in the future (or for a period of time) (such as buying equity at an agreed price and selling goods at an agreed price), and the owner can decide whether to exercise this right. Equity is to prove that the owner has the right to obtain operating income from an asset and has the right to vote on business decisions.
5. Stock option is generally a right without obligation. No obligation means that once the incentive object is given a stock option, the incentive object does not need to pay the consideration of the option, but only needs to pay the exercise price in the future, and of course can give up the exercise; The incentive of futures stocks is generally a creditor's right, that is, the incentive object generally needs to pay the consideration to obtain futures stocks. Of course, in practice, in order to increase the incentive range, unpaid rewards can also be used.
Six, stock option holders only have the right to expect to exchange real shares, and have no other share rights. Futures holders, on the other hand, enjoy the rights and interests such as share income rights, but do not enjoy the ownership and voting rights of shares.