<prompt> Human: My company is offering me ownership shares as part of a raise. Were a small company of 12 employees that did about 10M in gross business last year and on pace to do 15 this year. Im not sure what our profit margin is, but last year I received my full bonus which only happens if our total margin is over 18 so its at least that.How should I think about this offer in terms of real value? What questions should I ask, and what am I entitled to see as far as company financials? This is the first time the owner has offered equity in the company to someone else, so Im not sure he totally knows how to go about this either. This all came about because I was offered 50k more at another company, and my current company has countered with 25k more and ownership shares. So I want to objectively weigh the two offers and if I decide to stay, make sure I dont get screwed somehow the owner is my friend and I dont think hed screw me on purpose, but Im not convinced he knows what hes doing when it comes to offering equity as compensation.Edit: wanted to add that we are an LLC currently. But Ive heard him say something about switching to an s-corp soon at one point. Not sure where he currently stands on that.  <response>: I used to think owning a part of the company you work for was a great idea, but a family member through marriage gave me a new perspective that I hadnt considered. His advice was never invest in a company you work for, if it goes bust they will burn you twice as hard. Your income is already dependent on that company being successful enough to meet payroll, do you want to double up on that risk with your retirement money? For some people it makes sense to invest in their employer, for me it doesnt. 