Equity Toolkit

All modules

Module

Decode my grant

What does this grant actually mean?

6 min · 5 steps

Step 1 of 5

What does this grant actually mean?

Equity is part-ownership of the company. Usually a small slice. It can grow if the company grows, and disappear if it doesn't.

Show details

Two reasons companies grant it. Cash conservation: equity costs the company nothing today. Alignment: if you own a piece of the upside, you're more likely to care about the upside. The second reason is the better one.

← All modules
US-focused. Last reviewed April 2026Tax math follows IRS Pub 525, §422, §1202 and current AMT rules. See sources in the methodology note.

Educational only. Not tax, legal, or financial advice. Talk to a qualified advisor.