Understanding the Variances Between Stock Options and RSUs
Thursday, 18 April 2024, 08:00
Stock Options vs. RSUs: Key Differences Explained
What is the difference between a stock option and an RSU? We give the answer in simple terms. What is a stock option? What is an RSU? These can be important questions for both investors and employees, and Travis Hoium and Matt Frankel explain everything you need to know in the video below.
Key Points:
- Stock Option: Represents the right to buy company stock at a set price.
- RSU (Restricted Stock Unit): Grants ownership of company shares after a vesting period.
- Comparison: Stock options offer the potential for higher returns, while RSUs provide actual ownership without the need to purchase shares.
This insightful comparison sheds light on the advantages and considerations associated with stock options and RSUs, aiding in smart financial decision-making.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.