Hi Elizabeth. You made some very interesting points related to stock options. Employees have a variety of ways that they might acquire stock in a company. Its common to have company stock in 401k plans or in ESPP (employee stock purchase plans). Employees might even purchase a companys stock on their own as an individual. However, one of the more common ways for employees to own company stock is through stock option plans (aka ESOPs). While many companies offer these benefits to varying levels of employees, its often upper level management that receives the majority of the options. The idea here is to align managements personal financial goals with the financial goals of the organization. Class, how might the risks and rewards associated with each approach compare?