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After you have read basics of stocks trade and got common terms some of terms, its time to peek into real life examples.
Google is trend setter in many areas and its known that Googleplex is best working environment. Even today Google employees receive stock options beside salary in order to longterm bound themselves to company. GOOG index has been in good shape recently, but Google financial wizards went step further in securing employees.
If GOOG is under water they still earn money an have received round $40M of additional value during recent years. How?
By targeting 90th percentile of market price for new comers equity. More info can be found on slide on this page: