Liquidation Preference
A liquidation preference is a right that one class of stockholders may have to be paid ahead of other class(es) of stockholders in the case of a liquidation of the company.
A liquidation preference is a right that one class of stockholders may have to be paid ahead of other class(es) of stockholders in the case of a liquidation of the company.
This article defines what a ‘Drag-Along’ is
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.
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Drag-along rights enable majority shareholders to “drag along” minority shareholder shares in an acquisition.
Units of equity ownership in a corporation entitling their holder to a share of the corporation’s success through dividends and/or capital appreciation.
Many thanks to Al Browne for his contributions to this article. Whether you are a founder or venture investor sitting on the board of a portfolio company, you have fiduciary duties to…
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Control is a critical component of every venture capital deal. Control can be used to dictate desired outcomes or, through “negative controls,” to block undesired outcomes. Negative controls are typically…