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🌍 US & Europe · Equity & optionsStrike price
Also called: exercise price, grant price
In one line
The fixed price you pay per share to exercise an option, set at the share's fair market value on the day the option was granted.
In plain English
It's the 'buy price' baked into your option. Your paper gain is roughly today's share value minus your strike price, times how many shares you hold.
If you were explaining it to a 5-year-old
It's the price written on your toy voucher — the number of coins you must pay to claim the toy, no matter how expensive the toy becomes.
Why it matters when you sell
A low strike versus today's value means a bigger gain when you sell — but also a bigger taxable spread when you exercise. It drives both your upside and your tax bill.
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.