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Paydays provide a paycheck, but compensation can include equity, offering a chance for greater financial benefit through ownership in the company. As a stakeholder, you profit when the company's stock price rises, enhancing the value of your equity compensation. However, stock prices can also decline, potentially reducing the value of your equity. Understanding the specifics of your equity compensation plan is crucial, as plans vary widely in terms and conditions. Common types include stock options, which grant the option to buy shares at a set price, restricted stock awards, and restricted stock units. Familiarizing yourself with these options can maximize your benefits.