What Are Advisory Shares? How Do They Operate?
A Form Of Stock Options
Advisory shares, a form of stock options, are granted to startup advisors in lieu of cash compensation
Startup advisors, often industry experts and professionals, receive advisory shares to contribute strategic insights
Two primary types of advisory shares are Restricted Stock Awards (RSAs) and Stock Options
Two Primary Types
Advisory shares operate by giving advisors the option to purchase shares rather than receiving them outright.
Stock options will typically vest in a couple of years. This allows the company to delay the transfer of ownership to the advisors
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