Steve Jobs literally gave a masterclass on how "stock options" actually work in 1983: "If somebody came to work for your company, you could let them buy some stock. The problem is they might have to shell out $100,000. If the company went broke, they'd lose all their life savings" "So when somebody comes to work, let's say the stock's trading at ten dollars a share, you give them the option to buy ten thousand shares at ten dollars. They have four years to exercise that option" "If the stock goes down or stays the same, they never exercise it. They don't put up any money, they don't lose anything" "But if it goes to a hundred dollars a share, they can borrow the money to buy it at ten because it's worth a hundred" "In exchange, we only dole out their ability to exercise 25% a year, locking in people really for four years if the stock goes up" "Before we went public, over 80% of Apple was owned by the employees. Right now, I'd say over 50% of Apple is owned by the employees" "I don't think finance is what drives people at Apple. I don't think it's money. But feeling like you own a piece of the company, and this is your damn company" "We always tell people, you work for Apple first and your boss second"