To give or not to give employee equity, that is the question. One of the first issues startups deal with is how they plan on compensating key personnel. For startups with limited funds, there may not be many options. The want or need to issue equity really depends on your startup’s short and long term goals, as well as its financial capabilities.
While “stock” is in the name, stock options aren’t actually stocks. They are options, that when exercised (purchased) become stock. Holders of stock options have the right or ability to buy the stock at a specific price, known as the exercise price.