Options or Equity

The Details Behind Our $105,000 Investment

Gen Y Finance Guy Financial Analysis 54 Comments

One of the perks of joining the executive team at the company I work for is either being granted options or the opportunity to get equity (i.e stock) in the company. Not everyone gets a choice, but I am fortunate to be in a position where I get to choose. There are pros and cons to each, which I plan to walk through in this post. My hope is that by the end of this post I will have made a decision. As you can imagine there is a risk/reward trade off between the two options. For those not familiar with options, an option is a derivative of stock, meaning the option derives it’s value from the underlying asset (i.e …