When stock options are exercised they are converted into actual employer stock.

Name: When stock options are exercised they are converted into actual employer stock.
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When stock options are exercised, they are converted into actual employer stock at the stipulated exercise price. This means that the option holder has the right to purchase shares of the employer's stock at the exercise price and then become an actual shareholder of the company.

When Stock Options Are Exercised They Are Converted into Actual