When accepting a job offer, it’s important to understand how to take advantage of the rewards of stock benefits while mitigating the risks.

• First, know the difference between stock options and RSUs. 
• Stock options allow you to purchase shares in your company’s stocks at a predetermined price, also known as a strike price, for a limited number of years.
• If your company is performing well, the strike price of your stock will be lower than its fair market value by the time your options vest. This means you can buy your company stocks for a lower price and sell them at the higher fair market value.
• Restricted stock units (RSUs) the most common type of equity compensation and are typically offered after a private company goes public.
• Like stock options, RSUs vest over time, but unlike stock options, you don’t have to buy them. As soon as they vest, they are treated exactly the same as if you had bought your company’s shares in the open market. You can sell them and make money.
• Just like your cash salary, you should negotiate your equity compensation. Companies typically issue a grant of options or RSUs when you first sign a job offer.
• When deciding how much stock to hold, always consider your financial situation and the amount of risk you’re comfortable taking on.
• Be careful about how much company stock to hold, balancing both the risks and the rewards of concentrating your investments around a single entity. Don’t let this accumulate and become too large a part of your net worth.