A Fund Flow Statement is a financial statement prepared to analyse the reasons for changes in the financial position of a company between two balance sheets. It portrays the inflow and outflow of funds.
Formation Documents include the basic documents signed and completed during the formation of a company. This will always include the Certificate of Formation, Articles of Incorporation/Organization, or Certificate of Incorporation/Organization. The Formation Documents may include items such as (2) Resignation; […]
Fully-Diluted Basis is the total number of shares that would be outstanding if all securities that could convert into shares, such as convertible notes, options, warrants, and preferred shares, converted to common stock. Investors oftentimes want to know what their […]
An F-Reorganization is a type of tax free reorganization under Section 368(a)(1)(F) of the Internal Revenue Code. An F-Reorganization is a change of form, not substance of the entity.
Founders Stock refers to equity granted to a founder when the company is formed. The equity typically has a par value that is next to nothing and a four year vesting schedule.
A Founder creates or participates in the formation stage of a startup. Founders receive the startup’s initial shares in return for a capital contribution or services provided to the company.
The Foreign Corrupt Practices Act (FCPA) makes it unlawful for U.S. companies and individuals to offer anything of value to foreign officials in order to build or retain business.
Fiduciary Duty is the legal and ethical duty that an individual has to an entity, which includes the duty of care and the duty of loyalty.
Fair Market Value is the price that a reasonable third-party would pay for a given asset in the open market.
Form D is an SEC filing form used to file a notice of an exempt offering with the SEC. The exemption is found under Regulation D of the SEC. Form Ds are serious stuff; make sure you’re discussing with your […]