Understanding The $$$ Behind Stock Options - Hypothetical Startup Example

This video uses a hypothetical example from Carta to illustrate how startup stock options can lead to financial gain—or loss—depending on the company’s trajectory. It highlights both the upside potential of a successful IPO and the downside risk if the company underperforms.

• A fictional employee joins a startup, Meatly, in January 2020 and receives 16,000 stock options at a $1 strike price. A