Understanding Restricted Stock and Stock Options

What is the primary focus of the video regarding equity?

• Discussing salary negotiations

• Explaining restricted stock and stock options

• Analyzing company profits

• Understanding the stock market

What is a key feature of stock options?

• They are always more valuable than RSUs

• They do not require a vesting schedule

• They have a fixed strike price

• They are automatically granted

How do RSUs differ from stock options in terms of payment?

• RSUs have a strike price

• RSUs are always more valuable

• RSUs require a purchase decision

• RSUs are automatically yours upon vesting

What is a major tax difference between RSUs and stock options?

• Stock options are never taxed

• RSUs are taxed as income when they vest

• Stock options are taxed upon vesting

• RSUs are not taxed at all

What is a potential advantage of stock options over RSUs?

• They do not expire

• They vest immediately

• They offer strategic tax planning opportunities

• They are always more valuable

What happens to RSUs when you leave a company?

• They must be exercised immediately

• They remain yours

• They are forfeited

• They continue to vest

Why might RSUs be considered easier for employees?

• They require no decision-making upon vesting

• They have a higher strike price

• They are more common in startups

• They are always tax-free

What should you consider when deciding to exercise stock options?

• All of the above

• The company's future prospects

• The immediate tax implications

• The current stock market conditions

Can you negotiate your equity in a job offer?

• No, equity is fixed

• Only in public companies

• Only if you have stock options

• Yes, especially in startups

What is a common reason companies prefer stock options?

• They are more valuable to employees

• They are easier to manage

• They are less expensive for the company

• They vest immediately