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What's the difference? Equity in a public company is cash. You can even lock in what your RSUs will be worth when they vest with some options contracts.
by aianus 10y ago
What's the difference? Equity in a public company is cash. You can even lock in what your RSUs will be worth when they vest with some options contracts.
- rco8786 10y agoBecause it's apples to oranges. You take a larger chunk of illiquid stocks/options at a private company in exchange for the risk that it won't go public one day. That's an active tradeoff people are making whether they know it or not, so you can't compare salaries at a private company and illiquid equity to salaries + liquid equity at a public company.
- blablablame 10y agoSo if I enter a casino with 100 bucks set on betting on number 23, it means I actually own 1000 bucks? (or whatever that gives you?) Giving stock on a public company you can sell the moment that vests is valuable. Owning stock on a private company that you can't sell, can't probably cash in unless they IPO, etc is not.
- rco8786 10y agoYes that is the description of an illiquid potential future asset and a liquid current asset. both things that were addressed in my above comment.