Ownership instruments
Common and preferred shares are equity securities whose rights depend on their terms. A founder holding and a public-market holding may both involve shares, but transferability, information access, and governance arrangements can differ. Begin by identifying the actual class and issuer.
Awards and potential shares
An option grants a right to purchase on specified terms; an unexercised option is not the same as owning the underlying shares. Restricted awards and units introduce other conditions. Our employee-equity guides keep grant, vesting, exercise, and settlement separate.
Other uses of the word
A private equity fund interest describes an investment at the fund level, while book equity describes an accounting residual. Neither is interchangeable with the market price of a common share. Follow the relevant guide below before comparing values across these categories.
A share count means more when you know the rights and the denominator.
Go Deeper into Types of Equity
Stock Equity Explained: Shares, Rights, and Real Ownership
Understand stock equity, common and preferred shares, ownership percentages, market value, and the questions to ask before interpreting a holding.
Founder Equity Splits: A Practical Guide to Ownership and Commitment
Work through founder equity splits, future commitments, hiring pools, vesting, departures, and the documents behind an ownership agreement.
Venture Capital Equity: Valuation, Preferences, and Control
Explore venture capital equity with clear examples of pre-money valuation, liquidation preferences, option pools, governance, and financing trade-offs.