Equity Understanding Options

Equity compensation includes two main types: stock options (the right to buy shares at a fixed price) and RSUs (restricted stock units, direct shares that vest over time). Both are common in tech, startups, and growth companies. Options require an exercise decision: you pay the strike price, you own the shares. RSUs are simpler: they're given to you; you own them once they vest. Understanding both helps you evaluate offers and make financial decisions.