What are some common mistakes people make with equity?
An example of an AI chatbot conversation about common equity mistakes and how to avoid them.
What are some common mistakes people make with equity?
Some common mistakes include misunderstanding equity dilution, not considering vesting schedules, and failing to diversify.
Can you explain equity dilution?
Equity dilution occurs when a company issues more shares, reducing the ownership percentage of existing shareholders.
What is a vesting schedule?
A vesting schedule outlines when an employee earns their equity over time, often to encourage long-term commitment.
How can I avoid these mistakes?
To avoid these mistakes, educate yourself on equity terms, consult with financial advisors, and review your agreements carefully.
What should I do if I think I've made a mistake?
If you suspect a mistake, review your equity agreements, consult a financial advisor, and consider your options for correction.
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