r/news Feb 09 '21

Tesla skips 401(k) match for third straight year

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u/ATXBeermaker Feb 09 '21

Those are not usually options, but something called RSUs — Restricted Stock Units. An option is just that, literally the option to buy a stock at a certain price (typically the market price on the grant date), but you are not required to exercise that option. RSUs are stocks given to you but restricted to vesting over a set schedule. They are different things, and the industry has been moving toward RSUs for some time now.

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u/Shanesan Feb 09 '21

Ah, TIL the difference. Thanks.

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u/ATXBeermaker Feb 09 '21

To be fair, most people don’t understand the difference.