Options can be issued on any kind of stock. I think it makes sense to issue them on preferred stock. However I don't know what is the common way of handling thi

Options can be issued on any kind of stock. I think it makes sense to issue them on preferred stock. However I don't know what is the common way of handling this. In fact, the companies I know don't even have separate classes of stock. In these discussions it is important to understand that each company might have totally different arrangements when it comes to equity.