A beginner‑friendly guide to negotiating, understanding, and protecting your equity in tech

For ambitious women building wealth through work, ownership, and smart decisions.

Disclaimer: This is not financial or tax advice and intended for educational purposes only. Please always do your own research and consult a professional (e.g financial advisor, accountant).

Why this matters

Most people skim the equity paragraph and sign. That’s how wealth is left on the table.

This guide shows you - in plain English - how stock options really work, where taxes sneak in, how dilution erodes your stake, and exactly what to ask for before you sign.

You’ll learn:

• The core concepts (vesting, cliffs, option types, exercise windows, dilution)
• The math (what your shares could be worth at different exits)
• The tax traps (AMT + 83(b) explained clearly)
• The questions to ask (and why each one protects you)

What Are Stock Options?

• Definition: A stock option gives you the right (not obligation) to buy a share of company stock at a fixed price, called the strike price (or exercise price).
• Why they exist: Startups often can’t pay Big Tech salaries, so they use stock options to let employees share in the upside if the company grows or gets acquired.
• How you make money: If the company grows, the fair market value (FMV) of the stock (what the shares are worth today) goes up. If FMV > strike, you can buy low (strike price) and later sell high (FMV or exit price).

📊 Quick Example:

• Strike Price (set on grant date): $5