# Early exercise

> Early exercise — Exercising options before they vest, receiving restricted stock the company may repurchase if the holder leaves. Paired with an 83(b) election, the holding periods and the tax measurement start at exercise.

Source: https://lopifi.com/glossary/early-exercise
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is early exercise?** In accounting, early exercise means exercising options before they vest, receiving restricted stock the company may repurchase if the holder leaves. Paired with an 83(b) election, the holding periods and the tax measurement start at exercise.

## Words this system refuses for it

- 83(b) election (which it makes possible)
- acceleration

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** restricted-stock, 83-b-election