Equity glossary
Here is a guide to help you understand some terms and phrases that frequently come up in relation to equity.
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Category: Equity education
Startup employee stock options
Received stock options from your company and don’t understand what that means? Here’s how to make sense of your offer letter and option grant.
How stock options are taxed
We explore what it means to exercise stock options, the taxes you may need to pay, and the common times people exercise their options.
What is stock dilution?
Stock dilution, also called equity dilution or share dilution, happens when a company issues additional shares, which reduces the ownership percentage of existing shareholders in
Employee Shareholder Bill of Rights
Fair equity practices for employee shareholders at venture-backed companies.
Why you only have 90 days to exercise your options when you leave a startup-and why that’s changing
We dug into where the 90-day PTE window came from and how companies are rethinking their policy.
Common stock vs. preferred stock
Common stock and preferred stock both offer different benefits to shareholders. In general, common stock is reserved for employees, while preferred stock is given to investors.
What’s new with ASC 820 guidance
Stephanie Wittrock, an ASC 820 expert, hosts a panel explaining what ASC 820 is and what’s changing with the new guidance. Carta offers both self and full-service ASC 820 services to ensure your fund is ready for audit.
What is fair market value (FMV)?
Unlike public companies where value is set by the market, private companies use independent appraisers to assess their value. Fair market value is the current value of a private company’s common stock and it determines the strike price.
