Shares are equity in a company and gives a part of ownership in the company.Generally it is issued by a company to raise capital.
What are advisory Shares?
As the name suggests,advisory shares are given by a company to a person who has rendered his vsluable advise as a consultant This is goven to persons apart from board members who has helped compay to grow .Although consultant and attorney charge fee for their service sometimes they may also be given stock option
Why does a company issue an advisory shares?
An advisory share is issued mostly by startup company.A startup company may not have enough cash flow or revenues for paying high salaries or advisory fees,so they opt to pay advisory shares.
How many advisory shares can be paid?
Although there is no such regulation, but it should not be more than 5% of the total share capital.
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