PrivateTechSharesVesting
Also called: vest
In one line
The process of earning your equity over time, so you only fully own a grant once you have stayed long enough or hit agreed milestones.
In plain English
When you're given options or shares, you don't get them all at once. They 'vest' — become truly yours — in pieces as you keep working, usually over about four years. Leave early and you keep only what has vested.
If you were explaining it to a 5-year-old
Imagine you're promised a chocolate bar, but you get one square each month you help with chores. If you stop helping after three months, you keep three squares — not the whole bar.
Why it matters when you sell
Only vested equity is yours to exercise or sell. Before you plan any sale, the first number to pin down is how much you've actually vested.
Related terms
Put it to use
How vesting works · Value my equity
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.