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Equity

Partial ownership of a company offered as part of a compensation package, usually as shares or stock options.

Equity gives employees a stake in the company's future value, aligning their interests with its success. It commonly takes the form of stock options (the right to buy shares at a fixed price) or RSUs (shares granted over time).

Equity can be valuable or worth nothing depending on whether the company grows and exits. Treat it as upside on top of a solid base salary, not a replacement for one.