Ordinary Income Tax is a tax on income at rates published by the IRS. Ordinary income tax is generally significantly higher than capital gains tax.
Overhang is when preferred stock shareholders’ liquidation preference is greater than the amount of proceeds the company receives for liquidation. If there is overhang, none of the proceeds will be disbursed to the common shareholders.
Outstanding Shares refers to the number of shares that a company has issued to shareholders (including founders, investors, advisors, and option holders).
An Option Pool is a group of shares reserved by the company for long-term compensation to management and employees.
An Option Plan is a plan created by a company to issue stock options to its employees and service providers.
An Operating Partner is a position at a VC firm that is normally under managing director, but above principal.
A fund where deals are presented one at a time to the investors and the investors can choose to participate on a deal-by-deal basis. Contrast this with Blind Pool.
Outstanding Shares refers to the number of shares that a company has issued to shareholders (including founders, investors, advisors, and option holders).
Overhang is when preferred stock shareholders’ liquidation preference is greater than the amount of proceeds the company receives for liquidation. If there is overhang, none of the proceeds will be disbursed to the common shareholders.
Oversubscription occurs in any offering of securities when the demand for those securities exceeds the maximum size of the offering. When an offering becomes oversubscribed, investors can either elect to accept an allocation that is a reduced percentage of their […]