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 financing refers to the rounds of equity venture capital financing that startup companies pursue.
Full Ratchet Anti-Dilution Protection
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.
Broad-Based Weighted-Average Anti-Dilution Protection
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.