Ask HN: What's the Difference Between Profit Sharing and Equity? - leventkaplan
======
byoung2
Profit sharing is like someone renting out a house and giving you a percent of
the rent. If they sell the house, or if no one rents, the gravy train stops.

Equity is like someone giving you a percent ownership in a house. It won't put
money in your pocket now, but you'll get paid when the house sells, assuming
it ever sells, and for more than any mortgages against it.

------
gimo4000
Equity is shares in the company.

Profit Sharing is a portion of the company profits.

Profit sharing at my company would not be worth very much. But Equity in 5-10
years could be worth a small fortune.

At a company that isn't a small startup profit sharing could be huge.

