Business Pitch Dictionary by pitch.dog
Founder & employee equity · Core

Exercise price

Also called: strike price

ELI5

The fixed price paid to use an option.

Used in conversation

“The exercise price is based on fair market value.”

Definition

The price paid to buy a share when exercising an option or warrant.

Here “Exercise price” means: The price paid to buy a share when exercising an option or warrant.

Pitch context

You will see “Exercise price” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches founder & employee equity.

Why it matters: In founder & employee equity, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.