What is the difference between regular and advisory shares?

In this regard, regular and advisory shares are two such classes of equities. Regular shares are common shares that may be traded on a stock exchange. While advisory shares are typically options with a vesting period, wherein the holder provides strategies, advice, and recommendations to the company.

What are advisory shares?

Advisory shares, also known as ‘advisor shares’, are a type of stock given to company advisors instead of employees. Start-up companies most often use them as an alternative compensation since they typically lack the necessary cash flow to adequately compensate these advisors.

What is the difference between advisory shares and common stock options?

Advisory shares differ in some key ways from other types of equity a company may issue. The main difference is a pretty obvious one: advisory shares are only granted to advisors. Another key difference is that advisory shares issued as common stock options are always non-qualified stock options (NSOs).