Equity Compensation & Taxes, in friendly terms: RSUs vs options, cost basis, capital gains (Part 1)
If you're an early startup employee, a big chunk of your equity is going to go to paying taxes, so it's important to wrap your head around how all of this works and how RSUs, restricted stock, and options are different. We'll also cover short-term vs long capital gains, ordinary income, and liquidity.
00:00 Intro
00:36 How Equity Compensation Works
01:02 Kinds Of Equity Grants: RSUs and Options
01:41 Kinds Of Taxes: Ordinary and Capital Gains
02:52 Kinds Of Capital Gains: Short and Long
03:06 Recap
