Skip to content
Dictionary by pitch.dog
Founder & employee equity · Core

Exercise

Also called: option exercise

ELI5

Use the option and pay to buy the shares.

Used in conversation

“The employee exercised vested options before departure.”

Definition

The act of using an option or warrant to purchase shares.

Here “Exercise” means: The act of using an option or warrant to purchase shares.

Pitch context

You will see “Exercise” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches founder & employee equity.

Why it matters: In founder & employee equity, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

When the words have to travel

Need an investor or company deck?

Bring the business, the evidence or the half-formed ask. We help it travel beyond the spreadsheet.

See how pitch.dog can help
Sources & evidence · 5

Direct term-level sources and supporting source families.