An important differentiator between the two is that stock options is just that...an option to buy at a better/discount rate. They are not giving you stocks...you will have to use your own money to buy the stock options. RSUs are stocks that you can sell for money.
Thank you for the explanation :) If in my negotiations with a startup, I want to ask them for RSU's instead of ISO - what's a decent percentage of ISO's that I can ask for (relative to the number of ISO's being offered)? e.g. If they are offering me 1000 ISOs and I want RSU instead because of its simplicity, how many equivalent RSU should they offer?
Thanks for the video - one question: what date is considered for capital gains on RSUs? When the RSUs are granted or vested? I ask to figure out whether it'd be Short or Long Term cap gains.
Most companies generally take out some shares based on your tax rate, so you're not guaranteed the full amount of shares that have vested -- a fraction will be taken out automatically for taxes. If you hold onto your shares and sell at a later price, you may have to pay capital gains tax on the difference between the vested share price and the sold share price.
Is there any key items or considerations I missed?
I’ve seen a dozen explanations and this one finally helped me understand. Thank you!
Finally someone that was able to make me understand the difference between RSU and stock options. BRAVA!!
Yay!!
definitely interested in learning about whether or not to exercise your stockoptions if you choose to leave the company.
An important differentiator between the two is that stock options is just that...an option to buy at a better/discount rate. They are not giving you stocks...you will have to use your own money to buy the stock options. RSUs are stocks that you can sell for money.
This is a great video! Thank you so much! One step closer to deciding between the 2 job offers that I have. Keep up the good work!
So glad it helped, friend!
Wow so clear, watched a bunch of videos but this one was the best.
Oh I love this! It made everything much, much clearer! I'm just left wondering now what is the difference with regards to RSAs.
Both are restricted stock, but RSAs are bought on the award date, there is not cliffs of vesting.
@@JenniferBrick oh that's perfect! Thank you so much! No wonder RSAs don't seem to be common for companies to grant.
@@PMacMoraes yeah the only time I've seen RSAs was as bonuses
Thank you for the explanation :) If in my negotiations with a startup, I want to ask them for RSU's instead of ISO - what's a decent percentage of ISO's that I can ask for (relative to the number of ISO's being offered)? e.g. If they are offering me 1000 ISOs and I want RSU instead because of its simplicity, how many equivalent RSU should they offer?
what;s the diff between market value of a stock and sale price?
Thanks for the video - one question: what date is considered for capital gains on RSUs? When the RSUs are granted or vested? I ask to figure out whether it'd be Short or Long Term cap gains.
this was so helpful!! thank you 😊
Hi Jenn, thanks for the video. I got a RSU from my company. So far I've received 250 stocks but, I can only cash out 164 stocks.....is this normal?
Most companies generally take out some shares based on your tax rate, so you're not guaranteed the full amount of shares that have vested -- a fraction will be taken out automatically for taxes.
If you hold onto your shares and sell at a later price, you may have to pay capital gains tax on the difference between the vested share price and the sold share price.
thank you for this, very simple and to the point with some humor. Does the RSUs actually dilute shares?
Most of the time rsu is better
Why American women are talking so down at the end of each sentence ?