In order to sell shares of preferred stock, you first have to create the preferred stock. This can be accomplished only by amending the issuing corporation’s Certificate of Incorporation (The VentureDocs system produces an Amended and Restated Certificate of Incorporation in our Preferred Stock Financing legal document generator), and to do this, except in the […]
Shareholder
Participating Preferred – What the F Does It Mean?
“Participating” preferred stock increases the returns to investors on a sale of the company. If the liquidation preference is non-participating, it means that it is capped at the “up front” amount, so the investors holding Preferred Stock have “down side” protection in a distressed sale of the corporation. The “up side” of owning the preferred […]
Vesting of Shares Explained
Vesting Explained in Simple Terms… Vesting of shares means that the stockholder has to earn those shares over time by providing services to the corporation. If a stockholder ceases to provide services to the corporation and owns unvested shares, then the corporation will have an option to repurchase the unvested shares at their original issue […]