What is vesting?
To encourage employees to stay with a company longer, employees have to earn the right to purchase their shares over time. This is called vesting.
CARTA BLOG
Equity education
What is the $100K ISO limit?
Why you should care about the $100K rule What the $100K ISO rule says The number of shares that first become exercisable in a calendar year; The issue date of the grant(s); and The fair market value (FMV) of the shares when the grant(s) were issued. $100K limit example: A single grant Options granted: 120,000 […]
What are restricted stock units (RSUs)?
An RSU is a promise from your employer to give you shares of the company’s stock (or the cash equivalent) on a future date if certain restrictions are met. Learn more about this type of restricted stock.
What are non-qualified stock options (NSOs)?
Non-qualified stock options (NSOs) are a type of stock option that does not qualify for favorable tax treatment for the employee. Learn more about when you can exercise (buy) your shares, when you can sell them, and how they’re taxed.
What are incentive stock options (ISOs)?
ISOs are a type of stock option that qualifies for special tax treatment. Unlike other types of options, you usually don’t have to pay taxes when you exercise (buy) ISOs. Plus, you may be able to pay a lower tax rate if you meet certain requirements. Here’s what you need to know.
What you should know about direct listings
In a direct listing, shares are released directly from existing shareholders (employees and investors) to whoever wants to buy them. Learn why some private companies might explore a direct listing instead of an IPO.
How equity-holding employees can prepare for an IPO
2019 is already proving to be a banner year for IPOs. Some of the biggest names in tech have recently gone public, and others still are preparing for their public debut. Yet as an employee of one of these companies you may not be sure what this means for you financially. If your company is going public in 2019, or even in 2020, here’s what you can do to be IPO-ready.
What every founder needs to know about 409A valuations
A 409A valuation is an important (and legally required) step in a startup’s life. This is a basic lesson plan for founders on valuations.
How to manage a new or emerging venture fund
There’s a ton of advice out there for startup founders on how to raise money, set up business infrastructure, and track performance in the early stages of a company’s life. But there’s not as much guidance for managers of new venture funds.