My thoughts and opinions on life, work, and everything in between.

Guide to Equity and IPOs

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Table of Contents


General Thoughts

Like many finance and money management topics, knowledge around equity and in particular stock options is not a life skill that can be naturally picked up. When I first started working, the equity in my job offers just felt like an arbitrary number and I had no idea how to go about valuing it, and it's importance in my decision making was greatly underrepresented. This first part of this guide does a good job at providing a basic foundation for how to value equity.

The remaining sections provide some good context around what to do with the equity you receive. It's the typical financial advice you would receive, and I think its value is mostly in providing some basic approaches to consider when acting on the equity you have. A lot of the tax considerations are US specific, but the general idea of being aware of the tax implications on what you are doing is sound advice.