Option pool
Also called: employee pool, ESOP pool, equity pool
In one line
The block of shares a company sets aside to grant to employees as options or RSUs.
In plain English
Companies reserve a chunk of equity — often 10–20% — to hand out to the team over time. Your grant comes out of this pool.
If you were explaining it to a 5-year-old
It's the jar of chocolate the grown-ups keep aside just to reward the kids who help. Your squares come from that jar.
Why it matters when you sell
The pool is part of the fully-diluted count, so it dilutes everyone — and unallocated pool shares affect how your percentage is calculated.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.