Restricted Stock vs. Stock Options (Everything You Need to Know)
Restricted Stock vs. Stock Options (Everything You Need to Know) // I remember when I first started working in tech how confusing equity compensation was. I had no idea was restricted stock verus stock options were, what to consider when it came to startup equity, let alone how are stock options. TBH I wanted a video that would explain to me how stock options work. I sifted through everything out there I could understand, asked a lot of questions, and found my footing so I decided I wanted to make this video for you. I'll explain exactly what an RSU and stock options are, how they’re different including how to value them, how they’re taxed, and what happens to them when you leave a company. By the end, youll know the pros and cons of each of these equity compensation vehicles.
DISCLAIMER: I’m not a financial advisor or a tax professional - I definitely recommend if you’re structuring these or trying to figure out which is preferable for you, to consult with one of those professionals. I’m just sharing what I learned as a Tech Exec and tax payer :)
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• Restricted Stock vs. S...
Пікірлер: 20
Is there any key items or considerations I missed?
Finally someone that was able to make me understand the difference between RSU and stock options. BRAVA!!
@JenniferBrick
Жыл бұрын
Yay!!
Wow so clear, watched a bunch of videos but this one was the best.
This is a great video! Thank you so much! One step closer to deciding between the 2 job offers that I have. Keep up the good work!
@JenniferBrick
3 жыл бұрын
So glad it helped, friend!
definitely interested in learning about whether or not to exercise your stockoptions if you choose to leave the company.
this was so helpful!! thank you 😊
thank you for this, very simple and to the point with some humor. Does the RSUs actually dilute shares?
Thank you for the explanation :) If in my negotiations with a startup, I want to ask them for RSU's instead of ISO - what's a decent percentage of ISO's that I can ask for (relative to the number of ISO's being offered)? e.g. If they are offering me 1000 ISOs and I want RSU instead because of its simplicity, how many equivalent RSU should they offer?
Thanks for the video - one question: what date is considered for capital gains on RSUs? When the RSUs are granted or vested? I ask to figure out whether it'd be Short or Long Term cap gains.
what;s the diff between market value of a stock and sale price?
Oh I love this! It made everything much, much clearer! I'm just left wondering now what is the difference with regards to RSAs.
@JenniferBrick
3 жыл бұрын
Both are restricted stock, but RSAs are bought on the award date, there is not cliffs of vesting.
@PMacMoraes
3 жыл бұрын
@@JenniferBrick oh that's perfect! Thank you so much! No wonder RSAs don't seem to be common for companies to grant.
@JenniferBrick
3 жыл бұрын
@@PMacMoraes yeah the only time I've seen RSAs was as bonuses
Hi Jenn, thanks for the video. I got a RSU from my company. So far I've received 250 stocks but, I can only cash out 164 stocks.....is this normal?
@khanman9027
2 жыл бұрын
Most companies generally take out some shares based on your tax rate, so you're not guaranteed the full amount of shares that have vested -- a fraction will be taken out automatically for taxes. If you hold onto your shares and sell at a later price, you may have to pay capital gains tax on the difference between the vested share price and the sold share price.
Most of the time rsu is better
Why American women are talking so down at the end of each sentence ?