# Exercise price

> Exercise price — What an option holder pays per share to buy it. Set at least at fair market value on the grant date — the 409A value for a private company — to keep an option outside §409A and, for an ISO, inside §422.

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

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**What is exercise price?** In accounting, exercise price means what an option holder pays per share to buy it. Set at least at fair market value on the grant date — the 409A value for a private company — to keep an option outside §409A and, for an ISO, inside §422.

## Also known as

- Strike price

## Words this system refuses for it

- 409A value (the benchmark, not the price)
- grant price

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)