Share dilution is the decrease in ownership when additional shares/equity are issued as a result of a corporate transaction. Share dilution can also be called equity dilution and or stock dilution. Shares in private companies can have provisions of non-dilutive shares, where the equity owner will always keep the

Liquidation Preference Shareholder receives priority in being paid out in the case of a liquidity event Voting Rights Shareholder has the right to vote on company bylaws, board members, etc. Tag Along Rights Minority shareholders can sell their shares, or ‘tag along’, in the event a majority shareholders sells. Drag

People invest in a company and they receive stock representing their equity ownership in the company. But not all stock is created equal! Companies can issue different share classes to attract different investors. Here are a few differences between preferred and common stock: Characteristics of Common Stock * Upside Potential for

A drag along right allows the majority shareholder of a company to force all other shareholders to accept a buy-out offer, often from a third party like a fund or larger corporation. All of the shareholders receive the same terms of the sale in order to “drag” them along in

Tag along rights are legal shareholder agreements that guarantee minority stakeholders the right to sell their shares in the company at the same time and under the same conditions as the majority stakeholder. Tag along rights could be part of a venture capital deal where there are few majority shareholders

Shareholder meetings are a time for founders to not only report to their investors but to also align with them on a way forward. While these meetings can be a bit nerve-racking for new founders, they should be come less so if you utilize some best practices. Shareholder Meeting Best