Equity 101

Equity 101
What Is a Tender Offer? How This Liquidity Option Works

What Is a Tender Offer? How This Liquidity Option Works

A tender offer typically gives shareholders an opportunity to sell some or all of their shares. A company or third party can be the offerer. Learn more.

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Understanding the difference between ISOs and NSOs

Understanding the difference between ISOs and NSOs

Understanding the difference between ISOs and NSOs | Pulley

Equity 101
What Is a Cap Table? A Guide for Startup Founders

What Is a Cap Table? A Guide for Startup Founders

A capitalization table, or cap table, is a list of a company’s securities. Cap tables show different types of equity and help determine a company’s market value. Read our guide to learn about the different types of cap tables and mistakes to avoid.

Equity 101
RSU Tax 101: How Restricted Stock Units Are Taxed

RSU Tax 101: How Restricted Stock Units Are Taxed

Restricted Stock Units, or RSUs, are taxed at ordinary income tax rates upon vesting. Capital gains taxes may also apply at the time the stock is sold. Read more about how RSU taxes work.

Equity 101
Pulley's 409A Guide

Pulley's 409A Guide

What is a 409A valuation, why you need one, and how to get one

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Startup Stock Options: A Simple Guide for Founders and Employees

Startup Stock Options: A Simple Guide for Founders and Employees

Startup stock options work similarly to employee stock options at other types of companies. But startups move quickly, and so can the value of your options.

Equity 101
What Is the ISO $100K Limit?

What Is the ISO $100K Limit?

The ISO $100K limit prevents employees from taking too much advantage of the tax benefits associated with incentive stock options (ISOs).

Equity 101
What Is Contributed Capital?

What Is Contributed Capital?

Contributed capital is the total amount of money and assets shareholders have invested in a company. Here’s where to find it in your balance sheet.

Equity 101
Part I: What is Equity, and Why does it Matter? The Startup Founder's Guide to Equity
Equity 101
What Is a Stock Warrant and How Does It Work?

What Is a Stock Warrant and How Does It Work?

A stock warrant allows the holder to buy or sell shares of stock in the issuing company at a specified price and date. Here’s why companies issue warrants.

Equity 101
What Is a Liquidity Event?

What Is a Liquidity Event?

In a liquidity event, a company’s founders and investors turn their illiquid assets into liquid assets. Examples include IPOs and acquisitions. Learn more.

Equity 101
What Is Share Dilution? A Complete Guide for Startups

What Is Share Dilution? A Complete Guide for Startups

Share dilution occurs when a company does something to increase its number of shares outstanding. Here’s how it affects existing shareholders and investors.

Equity 101
Phantom Stock Plans: How This Alternative to Real Equity Works

Phantom Stock Plans: How This Alternative to Real Equity Works

Phantom stock, otherwise known as shadow stock, is a way to compensate employees without granting them actual shares of company stock. Learn more.

Equity 101
Stock Warrants vs. Stock Options: What’s the Difference?

Stock Warrants vs. Stock Options: What’s the Difference?

Stock warrants and options both allow the holder to buy or sell shares of stock at a specified price and date. But several key differences set them apart.

Equity 101
What is Stock Vesting and What does it mean to be Vested?

What is Stock Vesting and What does it mean to be Vested?

Most equity grants require a time-based vesting period or set of vesting milestones in order for the employee to become a full owner of the award. Read on.

Equity 101
RSAs vs. RSUs: What to Know About Restricted Stock

RSAs vs. RSUs: What to Know About Restricted Stock

RSAs and RSUs are types of restricted stock that work differently in terms of taxes, vesting, and other particulars. See which equity type is right for you.

Equity 101
What Is Rule 144?

What Is Rule 144?

SEC Rule 144 is an exemption that allows for the public resale of restricted and control securities if certain conditions are met. Read more about Rule 144.

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How Do Stock Options Work?

How Do Stock Options Work?

A stock option is a contract that allows a person to purchase a number of shares of stock at a fixed price. Learn how employee stock options work.

Equity 101
Exercising Stock Options: What It Means and When To Do It

Exercising Stock Options: What It Means and When To Do It

Exercising stock options means buying shares of the issuer’s common stock at the price set by the option grant agreement. Learn when and how to exercise.

Equity 101
What Is Venture Capital and How Does It Work?

What Is Venture Capital and How Does It Work?

Startup founders and other plucky entrepreneurs tend to be the face of innovation in America. This makes a good deal of sense, if by “innovation” we mean things like bold and disruptive business ideas that fuel economic growth (or create new economies altogether). But the money and support to help ...