Preferred Stock
Preferred Stock (like Common Stock) is a security that represents ownership in a corporation. In addition to the ownership interest, Preferred Stock has rights that Common Stock does not.
Preferred Stock (like Common Stock) is a security that represents ownership in a corporation. In addition to the ownership interest, Preferred Stock has rights that Common Stock does not.
Series FF Stock is a hybrid between Common Stock and Preferred Stock, and sometimes issued to founders at the time of incorporation…
Units of equity ownership in a corporation entitling their holder to a share of the corporation’s success through dividends and/or capital appreciation.
I often have a discussion that goes like this: New employee: “I want Founder Stock” Me: “I see, so you want to buy Common Stock” New employee: “No, I want…
What Is Founder’s Stock? In US startups, “Founder’s Stock” refers to the equity interest that is issued to Founders (and perhaps others – also check out my article Who is a…
A type of anti-dilution protection for preferred stock in the event of a down round of series financing that adjusts the number of common shares the preferred shares can be converted into based on the new share price.
“Fully diluted” shares are the total common shares of a company counting all currently issued and outstanding, plus shares that could be issued through the conversion of convertible preferred stock or through the exercise of outstanding options and warrants.
Provisions in a company’s certificate of incorporation that increase the number of shares of common stock into which preferred stock when the company sells stock at a lower price.
Angel investors are wealthy individuals who provide early capital for a business startup in exchange for preferred stock or convertible debt.
This article defines what a ‘Drag-Along’ is
UK review by Ryan Naftulin If you’re negotiating for an equity financing, bridge financing, bank financing, venture debt, or a commercial transaction for your startup, you may be asked to…