What Are Advisory Shares vs Equity

What are advisory shares on Shark Tank?

Advisory shares are a type of stock option given to company advisors rather than employees. They may be issued to startup company advisors in lieu of cash compensation. Advisors are usually granted options to buy shares rather than given the actual shares.

What is the benefit of advisory shares?

Advisory shares allow companies to delay the transfer of ownership to advisors while still providing an incentive for advisors to contribute to the company long term instead providing them with an immediate return on their investment in the company.