Cumulative Dividend
A cumulative dividend is a feature of preferred stock where unpaid dividends accumulate and must be paid out before any dividends are distributed to common shareholders.
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A cumulative dividend is a feature of preferred stock where unpaid dividends accumulate and must be paid out before any dividends are distributed to common shareholders.
A conversion discount gives convertible note or SAFE holders the right to convert their investment into equity at a lower price per share than what new investors pay during a subsequent financing round.
A Certificate of Incumbency is an official document issued by a company or its registered agent, identifying the current officers, directors, and authorized signatories, used in international transactions to verify authority.
A B Corporation (Benefit Corporation) is a company certified by B Lab that meets high standards of verified social and environmental performance, accountability, and transparency, balancing profit with purpose.
A C Corporation (C-Corp) is the standard form of corporation in the US, taxed separately from its owners, offering unlimited investors, multiple share classes, and preferred by venture capital investors.
A carveout in business refers to either: (1) a provision in a contract excluding certain items from coverage, or (2) a corporate transaction where a parent company sells a minority stake in a subsidiary through an IPO.
Capital gains are the profits realized when a capital asset (shares, real estate, intellectual property, partnership interests) is sold for more than its cost basis.
Broad-based weighted average is an anti-dilution formula that adjusts the conversion price of preferred stock based on the total number of fully diluted shares outstanding, providing less protection to investors than the full ratchet method.
Book value is the net value of a company’s assets minus its liabilities, as recorded on its balance sheet, representing the theoretical liquidation value of the company.
Boilerplate refers to standardized clauses or language used in legal contracts that are largely non-negotiable and appear routinely across many agreements, covering general matters like governing law, severability, and notices.